Correlation Between Bankinter and Mistral Patrimonio
Can any of the company-specific risk be diversified away by investing in both Bankinter and Mistral Patrimonio 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 Mistral Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter and Mistral Patrimonio Inmobiliario, you can compare the effects of market volatilities on Bankinter and Mistral Patrimonio 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 Mistral Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Mistral Patrimonio.
Diversification Opportunities for Bankinter and Mistral Patrimonio
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bankinter and Mistral is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter and Mistral Patrimonio Inmobiliari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mistral Patrimonio 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 Mistral Patrimonio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mistral Patrimonio has no effect on the direction of Bankinter i.e., Bankinter and Mistral Patrimonio go up and down completely randomly.
Pair Corralation between Bankinter and Mistral Patrimonio
Assuming the 90 days trading horizon Bankinter is expected to generate 1.04 times less return on investment than Mistral Patrimonio. But when comparing it to its historical volatility, Bankinter is 15.81 times less risky than Mistral Patrimonio. It trades about 0.11 of its potential returns per unit of risk. Mistral Patrimonio Inmobiliario is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Mistral Patrimonio Inmobiliario on September 1, 2024 and sell it today you would lose (101.00) from holding Mistral Patrimonio Inmobiliario or give up 53.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bankinter vs. Mistral Patrimonio Inmobiliari
Performance |
| Timeline |
| Bankinter |
| Mistral Patrimonio |
Bankinter and Mistral Patrimonio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Mistral Patrimonio
The main advantage of trading using opposite Bankinter and Mistral Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Mistral Patrimonio 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 Mistral Patrimonio will offset losses from the drop in Mistral Patrimonio's long position.| Bankinter vs. Banco de Sabadell | Bankinter vs. Caixabank SA | Bankinter vs. Acerinox | Bankinter vs. ACS Actividades de |
| Mistral Patrimonio vs. Fidere Patrimonio SOCIMI | Mistral Patrimonio vs. Metrovacesa SA | Mistral Patrimonio vs. Elecnor SA | Mistral Patrimonio vs. Mapfre |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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