Correlation Between Bank Hapoalim and Bankinter
Can any of the company-specific risk be diversified away by investing in both Bank Hapoalim 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 Bank Hapoalim and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Hapoalim ADR and Bankinter SA ADR, you can compare the effects of market volatilities on Bank Hapoalim 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 Bank Hapoalim with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Hapoalim and Bankinter.
Diversification Opportunities for Bank Hapoalim and Bankinter
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and Bankinter is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bank Hapoalim ADR 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 Bank Hapoalim 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 Bank Hapoalim ADR 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 Bank Hapoalim i.e., Bank Hapoalim and Bankinter go up and down completely randomly.
Pair Corralation between Bank Hapoalim and Bankinter
Assuming the 90 days horizon Bank Hapoalim ADR is expected to generate 1.08 times more return on investment than Bankinter. However, Bank Hapoalim is 1.08 times more volatile than Bankinter SA ADR. It trades about 0.37 of its potential returns per unit of risk. Bankinter SA ADR is currently generating about 0.39 per unit of risk. If you would invest 5,683 in Bank Hapoalim ADR on November 3, 2024 and sell it today you would earn a total of 947.00 from holding Bank Hapoalim ADR or generate 16.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Hapoalim ADR vs. Bankinter SA ADR
Performance |
| Timeline |
| Bank Hapoalim ADR |
| Bankinter SA ADR |
Bank Hapoalim and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Hapoalim and Bankinter
The main advantage of trading using opposite Bank Hapoalim and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Hapoalim 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.| Bank Hapoalim vs. Israel Discount Bank | Bank Hapoalim vs. Baraboo Bancorporation | Bank Hapoalim vs. Schweizerische Nationalbank | Bank Hapoalim vs. Danske Bank AS |
| Bankinter vs. Bank Hapoalim ADR | Bankinter vs. Bank of East | Bankinter vs. BOC Hong Kong | Bankinter vs. Commercial International Bank |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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