Correlation Between Bankinter and IBEX Total
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By analyzing existing cross correlation between Bankinter and IBEX Total Return, you can compare the effects of market volatilities on Bankinter and IBEX Total 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 IBEX Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and IBEX Total.
Diversification Opportunities for Bankinter and IBEX Total
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bankinter and IBEX is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter and IBEX Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBEX Total Return 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 are associated (or correlated) with IBEX Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX Total Return has no effect on the direction of Bankinter i.e., Bankinter and IBEX Total go up and down completely randomly.
Pair Corralation between Bankinter and IBEX Total
Assuming the 90 days trading horizon Bankinter is expected to generate 1.67 times more return on investment than IBEX Total. However, Bankinter is 1.67 times more volatile than IBEX Total Return. It trades about 0.01 of its potential returns per unit of risk. IBEX Total Return is currently generating about -0.1 per unit of risk. If you would invest 769.00 in Bankinter on October 10, 2024 and sell it today you would earn a total of 1.00 from holding Bankinter or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bankinter vs. IBEX Total Return
Performance |
| Timeline |
Bankinter and IBEX Total Volatility Contrast
Predicted Return Density |
| Returns |
Bankinter
Pair trading matchups for Bankinter
IBEX Total Return
Pair trading matchups for IBEX Total
Pair Trading with Bankinter and IBEX Total
The main advantage of trading using opposite Bankinter and IBEX Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, IBEX Total 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 IBEX Total will offset losses from the drop in IBEX Total's long position.The idea behind Bankinter and IBEX Total Return pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IBEX Total vs. Millenium Hotels Real | IBEX Total vs. Melia Hotels | IBEX Total vs. Atresmedia Corporacin de | IBEX Total vs. Arteche Lantegi Elkartea |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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