Correlation Between Bankinter and Bank Hapoalim
Can any of the company-specific risk be diversified away by investing in both Bankinter and Bank Hapoalim 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 Bank Hapoalim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter SA ADR and Bank Hapoalim ADR, you can compare the effects of market volatilities on Bankinter and Bank Hapoalim 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 Bank Hapoalim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Bank Hapoalim.
Diversification Opportunities for Bankinter and Bank Hapoalim
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bankinter and Bank is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter SA ADR and Bank Hapoalim ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Hapoalim ADR 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 ADR are associated (or correlated) with Bank Hapoalim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Hapoalim ADR has no effect on the direction of Bankinter i.e., Bankinter and Bank Hapoalim go up and down completely randomly.
Pair Corralation between Bankinter and Bank Hapoalim
Assuming the 90 days horizon Bankinter is expected to generate 1.04 times less return on investment than Bank Hapoalim. But when comparing it to its historical volatility, Bankinter SA ADR is 1.07 times less risky than Bank Hapoalim. It trades about 0.38 of its potential returns per unit of risk. Bank Hapoalim ADR is currently generating about 0.36 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankinter SA ADR vs. Bank Hapoalim ADR
Performance |
| Timeline |
| Bankinter SA ADR |
| Bank Hapoalim ADR |
Bankinter and Bank Hapoalim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Bank Hapoalim
The main advantage of trading using opposite Bankinter and Bank Hapoalim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Bank Hapoalim 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 Bank Hapoalim will offset losses from the drop in Bank Hapoalim's long position.| Bankinter vs. Bank Hapoalim ADR | Bankinter vs. Bank of East | Bankinter vs. BOC Hong Kong | Bankinter vs. Commercial International Bank |
| Bank Hapoalim vs. Israel Discount Bank | Bank Hapoalim vs. Baraboo Bancorporation | Bank Hapoalim vs. Schweizerische Nationalbank | Bank Hapoalim vs. Danske Bank 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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