Correlation Between Bankinter and Unicaja Banco
Can any of the company-specific risk be diversified away by investing in both Bankinter and Unicaja Banco 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 Unicaja Banco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter and Unicaja Banco SA, you can compare the effects of market volatilities on Bankinter and Unicaja Banco 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 Unicaja Banco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Unicaja Banco.
Diversification Opportunities for Bankinter and Unicaja Banco
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bankinter and Unicaja is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter and Unicaja Banco SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unicaja Banco SA 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 Unicaja Banco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unicaja Banco SA has no effect on the direction of Bankinter i.e., Bankinter and Unicaja Banco go up and down completely randomly.
Pair Corralation between Bankinter and Unicaja Banco
Assuming the 90 days trading horizon Bankinter is expected to generate 0.9 times more return on investment than Unicaja Banco. However, Bankinter is 1.11 times less risky than Unicaja Banco. It trades about -0.01 of its potential returns per unit of risk. Unicaja Banco SA is currently generating about -0.03 per unit of risk. If you would invest 773.00 in Bankinter on August 31, 2024 and sell it today you would lose (24.00) from holding Bankinter or give up 3.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankinter vs. Unicaja Banco SA
Performance |
| Timeline |
| Bankinter |
| Unicaja Banco SA |
Bankinter and Unicaja Banco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Unicaja Banco
The main advantage of trading using opposite Bankinter and Unicaja Banco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Unicaja Banco 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 Unicaja Banco will offset losses from the drop in Unicaja Banco's long position.| Bankinter vs. Banco de Sabadell | Bankinter vs. Caixabank SA | Bankinter vs. Acerinox | Bankinter vs. ACS Actividades de |
| Unicaja Banco vs. Bankinter | Unicaja Banco vs. Banco de Sabadell | Unicaja Banco vs. Caixabank SA | Unicaja Banco vs. ENCE Energa y |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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