Correlation Between Bankinter and Apple
Can any of the company-specific risk be diversified away by investing in both Bankinter and Apple 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 and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter SA and Apple Inc, you can compare the effects of market volatilities on Bankinter and Apple 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 with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Apple.
Diversification Opportunities for Bankinter and Apple
Excellent diversification
The 3 months correlation between Bankinter and Apple is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter SA and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Bankinter 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 SA are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Bankinter i.e., Bankinter and Apple go up and down completely randomly.
Pair Corralation between Bankinter and Apple
Assuming the 90 days trading horizon Bankinter SA is expected to generate 1.17 times more return on investment than Apple. However, Bankinter is 1.17 times more volatile than Apple Inc. It trades about 0.13 of its potential returns per unit of risk. Apple Inc is currently generating about 0.09 per unit of risk. If you would invest 737.00 in Bankinter SA on August 27, 2024 and sell it today you would earn a total of 31.00 from holding Bankinter SA or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankinter SA vs. Apple Inc
Performance |
| Timeline |
| Bankinter SA |
| Apple Inc |
Bankinter and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Apple
The main advantage of trading using opposite Bankinter and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Bankinter vs. Canadian Utilities Limited | Bankinter vs. Clean Energy Fuels | Bankinter vs. Major Drilling Group | Bankinter vs. Ultra Clean Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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