Correlation Between BANKINTER ADR and Tradegate
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and Tradegate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BANKINTER ADR and Tradegate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANKINTER ADR 2007 and Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on BANKINTER ADR and Tradegate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BANKINTER ADR with a short position of Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and Tradegate.
Diversification Opportunities for BANKINTER ADR and Tradegate
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BANKINTER and Tradegate is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap and BANKINTER ADR is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BANKINTER ADR 2007 are associated (or correlated) with Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and Tradegate go up and down completely randomly.
Pair Corralation between BANKINTER ADR and Tradegate
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 1.72 times more return on investment than Tradegate. However, BANKINTER ADR is 1.72 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.06 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.04 per unit of risk. If you would invest 513.00 in BANKINTER ADR 2007 on September 12, 2024 and sell it today you would earn a total of 232.00 from holding BANKINTER ADR 2007 or generate 45.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| Tradegate AG Wertpap |
BANKINTER ADR and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and Tradegate
The main advantage of trading using opposite BANKINTER ADR and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, Tradegate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tradegate will offset losses from the drop in Tradegate's long position.| BANKINTER ADR vs. Citic Telecom International | BANKINTER ADR vs. CHINA TELECOM H | BANKINTER ADR vs. American Homes 4 | BANKINTER ADR vs. Zoom Video Communications |
| Tradegate vs. Superior Plus Corp | Tradegate vs. SIVERS SEMICONDUCTORS AB | Tradegate vs. CHINA HUARONG ENERHD 50 | Tradegate vs. NORDIC HALIBUT AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |