Correlation Between Bankinter and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Bankinter and Lyxor UCITS 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 Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter and Lyxor UCITS Ibex35, you can compare the effects of market volatilities on Bankinter and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Lyxor UCITS.
Diversification Opportunities for Bankinter and Lyxor UCITS
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bankinter and Lyxor is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter and Lyxor UCITS Ibex35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Ibex35 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Ibex35 has no effect on the direction of Bankinter i.e., Bankinter and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Bankinter and Lyxor UCITS
Assuming the 90 days trading horizon Bankinter is expected to generate 1.83 times more return on investment than Lyxor UCITS. However, Bankinter is 1.83 times more volatile than Lyxor UCITS Ibex35. It trades about 0.06 of its potential returns per unit of risk. Lyxor UCITS Ibex35 is currently generating about 0.1 per unit of risk. If you would invest 495.00 in Bankinter on September 1, 2024 and sell it today you would earn a total of 254.00 from holding Bankinter or generate 51.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankinter vs. Lyxor UCITS Ibex35
Performance |
| Timeline |
| Bankinter |
| Lyxor UCITS Ibex35 |
Bankinter and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Lyxor UCITS
The main advantage of trading using opposite Bankinter and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| Bankinter vs. Banco de Sabadell | Bankinter vs. Caixabank SA | Bankinter vs. Acerinox | Bankinter vs. ACS Actividades de |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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