Correlation Between BBVA Banco and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both BBVA Banco and TEN SQUARE 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 BBVA Banco and TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBVA Banco Frances and TEN SQUARE GAMES, you can compare the effects of market volatilities on BBVA Banco and TEN SQUARE 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 BBVA Banco with a short position of TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBVA Banco and TEN SQUARE.
Diversification Opportunities for BBVA Banco and TEN SQUARE
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BBVA and TEN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BBVA Banco Frances and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES and BBVA Banco 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 BBVA Banco Frances are associated (or correlated) with TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of BBVA Banco i.e., BBVA Banco and TEN SQUARE go up and down completely randomly.
Pair Corralation between BBVA Banco and TEN SQUARE
Assuming the 90 days horizon BBVA Banco Frances is expected to generate 1.39 times more return on investment than TEN SQUARE. However, BBVA Banco is 1.39 times more volatile than TEN SQUARE GAMES. It trades about 0.11 of its potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.02 per unit of risk. If you would invest 320.00 in BBVA Banco Frances on November 1, 2024 and sell it today you would earn a total of 1,820 from holding BBVA Banco Frances or generate 568.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
BBVA Banco Frances vs. TEN SQUARE GAMES
Performance |
| Timeline |
| BBVA Banco Frances |
| TEN SQUARE GAMES |
BBVA Banco and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBVA Banco and TEN SQUARE
The main advantage of trading using opposite BBVA Banco and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBVA Banco position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| BBVA Banco vs. STMicroelectronics NV | BBVA Banco vs. AGNC INVESTMENT | BBVA Banco vs. Meiko Electronics Co | BBVA Banco vs. ECHO INVESTMENT ZY |
| TEN SQUARE vs. NEXON Co | TEN SQUARE vs. NEXON Co | TEN SQUARE vs. Take Two Interactive Software | TEN SQUARE vs. Aristocrat Leisure Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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