Correlation Between Bankinter and SVB Financial
Can any of the company-specific risk be diversified away by investing in both Bankinter and SVB Financial 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 SVB Financial 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 SVB Financial Group, you can compare the effects of market volatilities on Bankinter and SVB Financial 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 SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and SVB Financial.
Diversification Opportunities for Bankinter and SVB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bankinter and SVB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter SA ADR and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group 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 SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of Bankinter i.e., Bankinter and SVB Financial go up and down completely randomly.
Pair Corralation between Bankinter and SVB Financial
If you would invest 890.00 in Bankinter SA ADR on November 27, 2024 and sell it today you would earn a total of 81.00 from holding Bankinter SA ADR or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bankinter SA ADR vs. SVB Financial Group
Performance |
| Timeline |
| Bankinter SA ADR |
| SVB Financial Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bankinter and SVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and SVB Financial
The main advantage of trading using opposite Bankinter and SVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, SVB Financial 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 SVB Financial will offset losses from the drop in SVB Financial's long position.| Bankinter vs. Bank Hapoalim ADR | Bankinter vs. Bank of East | Bankinter vs. BOC Hong Kong | Bankinter vs. Commercial International Bank |
| SVB Financial vs. Falcon Metals Limited | SVB Financial vs. Cortus Metals | SVB Financial vs. Regeneron Pharmaceuticals | SVB Financial vs. Aluminum of |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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