Correlation Between Bankinter and JAPAN POST
Can any of the company-specific risk be diversified away by investing in both Bankinter and JAPAN POST 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 JAPAN POST 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 JAPAN POST BANK, you can compare the effects of market volatilities on Bankinter and JAPAN POST 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 JAPAN POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and JAPAN POST.
Diversification Opportunities for Bankinter and JAPAN POST
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bankinter and JAPAN is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter SA ADR and JAPAN POST BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN POST BANK 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 JAPAN POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN POST BANK has no effect on the direction of Bankinter i.e., Bankinter and JAPAN POST go up and down completely randomly.
Pair Corralation between Bankinter and JAPAN POST
Assuming the 90 days horizon Bankinter SA ADR is expected to under-perform the JAPAN POST. In addition to that, Bankinter is 1.18 times more volatile than JAPAN POST BANK. It trades about -0.01 of its total potential returns per unit of risk. JAPAN POST BANK is currently generating about 0.01 per unit of volatility. If you would invest 955.00 in JAPAN POST BANK on October 22, 2024 and sell it today you would lose (10.00) from holding JAPAN POST BANK or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Bankinter SA ADR vs. JAPAN POST BANK
Performance |
| Timeline |
| Bankinter SA ADR |
| JAPAN POST BANK |
Bankinter and JAPAN POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and JAPAN POST
The main advantage of trading using opposite Bankinter and JAPAN POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, JAPAN POST 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 JAPAN POST will offset losses from the drop in JAPAN POST's long position.| Bankinter vs. Bank Hapoalim ADR | Bankinter vs. Bank of East | Bankinter vs. BOC Hong Kong | Bankinter vs. Commercial International Bank |
| JAPAN POST vs. Bankinter SA ADR | JAPAN POST vs. First Horizon | JAPAN POST vs. JAPAN POST BANK | JAPAN POST vs. CaixaBank SA |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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