Correlation Between CrossFirst Bankshares and Itau CorpBanca
Can any of the company-specific risk be diversified away by investing in both CrossFirst Bankshares and Itau CorpBanca 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 CrossFirst Bankshares and Itau CorpBanca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrossFirst Bankshares and Itau CorpBanca ADR, you can compare the effects of market volatilities on CrossFirst Bankshares and Itau CorpBanca 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 CrossFirst Bankshares with a short position of Itau CorpBanca. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrossFirst Bankshares and Itau CorpBanca.
Diversification Opportunities for CrossFirst Bankshares and Itau CorpBanca
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between CrossFirst and Itau is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and Itau CorpBanca ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itau CorpBanca ADR and CrossFirst Bankshares 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 CrossFirst Bankshares are associated (or correlated) with Itau CorpBanca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itau CorpBanca ADR has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and Itau CorpBanca go up and down completely randomly.
Pair Corralation between CrossFirst Bankshares and Itau CorpBanca
If you would invest 1,605 in CrossFirst Bankshares on August 30, 2024 and sell it today you would earn a total of 152.00 from holding CrossFirst Bankshares or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
CrossFirst Bankshares vs. Itau CorpBanca ADR
Performance |
| Timeline |
| CrossFirst Bankshares |
| Itau CorpBanca ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CrossFirst Bankshares and Itau CorpBanca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrossFirst Bankshares and Itau CorpBanca
The main advantage of trading using opposite CrossFirst Bankshares and Itau CorpBanca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrossFirst Bankshares position performs unexpectedly, Itau CorpBanca 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 Itau CorpBanca will offset losses from the drop in Itau CorpBanca's long position.| CrossFirst Bankshares vs. Home Bancorp | CrossFirst Bankshares vs. Great Southern Bancorp | CrossFirst Bankshares vs. Finward Bancorp | CrossFirst Bankshares vs. Community West Bancshares |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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