Correlation Between BOC Hong and Bankinter
Can any of the company-specific risk be diversified away by investing in both BOC Hong and Bankinter 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 BOC Hong and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOC Hong Kong and Bankinter SA ADR, you can compare the effects of market volatilities on BOC Hong and Bankinter 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 BOC Hong with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOC Hong and Bankinter.
Diversification Opportunities for BOC Hong and Bankinter
Excellent diversification
The 3 months correlation between BOC and Bankinter is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding BOC Hong Kong and Bankinter SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA ADR and BOC Hong 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 BOC Hong Kong are associated (or correlated) with Bankinter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinter SA ADR has no effect on the direction of BOC Hong i.e., BOC Hong and Bankinter go up and down completely randomly.
Pair Corralation between BOC Hong and Bankinter
Assuming the 90 days horizon BOC Hong Kong is expected to generate 0.5 times more return on investment than Bankinter. However, BOC Hong Kong is 1.98 times less risky than Bankinter. It trades about 0.04 of its potential returns per unit of risk. Bankinter SA ADR is currently generating about -0.02 per unit of risk. If you would invest 5,888 in BOC Hong Kong on September 1, 2024 and sell it today you would earn a total of 313.00 from holding BOC Hong Kong or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
BOC Hong Kong vs. Bankinter SA ADR
Performance |
| Timeline |
| BOC Hong Kong |
| Bankinter SA ADR |
BOC Hong and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOC Hong and Bankinter
The main advantage of trading using opposite BOC Hong and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOC Hong position performs unexpectedly, Bankinter 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 Bankinter will offset losses from the drop in Bankinter's long position.| BOC Hong vs. Bank of the | BOC Hong vs. China Merchants Bank | BOC Hong vs. BDO Unibank ADR | BOC Hong vs. Bangkok Bank PCL |
| Bankinter vs. Piraeus Bank SA | Bankinter vs. Turkiye Garanti Bankasi | Bankinter vs. Delhi Bank Corp | Bankinter vs. Uwharrie Capital Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |