Correlation Between Bankinter and Revenga Ingenieros
Can any of the company-specific risk be diversified away by investing in both Bankinter and Revenga Ingenieros 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 Revenga Ingenieros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter and Revenga Ingenieros SA, you can compare the effects of market volatilities on Bankinter and Revenga Ingenieros 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 Revenga Ingenieros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Revenga Ingenieros.
Diversification Opportunities for Bankinter and Revenga Ingenieros
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bankinter and Revenga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter and Revenga Ingenieros SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revenga Ingenieros 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 Revenga Ingenieros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revenga Ingenieros has no effect on the direction of Bankinter i.e., Bankinter and Revenga Ingenieros go up and down completely randomly.
Pair Corralation between Bankinter and Revenga Ingenieros
If you would invest 721.00 in Bankinter on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Bankinter or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bankinter vs. Revenga Ingenieros SA
Performance |
| Timeline |
| Bankinter |
| Revenga Ingenieros |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bankinter and Revenga Ingenieros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Revenga Ingenieros
The main advantage of trading using opposite Bankinter and Revenga Ingenieros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Revenga Ingenieros 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 Revenga Ingenieros will offset losses from the drop in Revenga Ingenieros' long position.The idea behind Bankinter and Revenga Ingenieros SA 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.| Revenga Ingenieros vs. NH Hoteles | Revenga Ingenieros vs. Aedas Homes SL | Revenga Ingenieros vs. Azaria Rental SOCIMI | Revenga Ingenieros vs. Technomeca Aerospace 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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