Correlation Between Commercial International and Bankinter
Can any of the company-specific risk be diversified away by investing in both Commercial International and Bankinter 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 Commercial International and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial International Bank and Bankinter SA ADR, you can compare the effects of market volatilities on Commercial International and Bankinter 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 Commercial International with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial International and Bankinter.
Diversification Opportunities for Commercial International and Bankinter
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commercial and Bankinter is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Commercial International Bank and Bankinter SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA ADR and Commercial International 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 Commercial International Bank are associated (or correlated) with Bankinter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinter SA ADR has no effect on the direction of Commercial International i.e., Commercial International and Bankinter go up and down completely randomly.
Pair Corralation between Commercial International and Bankinter
Assuming the 90 days horizon Commercial International Bank is expected to generate 0.6 times more return on investment than Bankinter. However, Commercial International Bank is 1.66 times less risky than Bankinter. It trades about -0.01 of its potential returns per unit of risk. Bankinter SA ADR is currently generating about -0.02 per unit of risk. If you would invest 157.00 in Commercial International Bank on September 1, 2024 and sell it today you would lose (5.00) from holding Commercial International Bank or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Commercial International Bank vs. Bankinter SA ADR
Performance |
| Timeline |
| Commercial International |
| Bankinter SA ADR |
Commercial International and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial International and Bankinter
The main advantage of trading using opposite Commercial International and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial International position performs unexpectedly, Bankinter 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 Bankinter will offset losses from the drop in Bankinter's long position.| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
| Bankinter vs. Piraeus Bank SA | Bankinter vs. Turkiye Garanti Bankasi | Bankinter vs. Delhi Bank Corp | Bankinter vs. Uwharrie Capital Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |