Correlation Between COMINTL BANK and VIRG NATL
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK and VIRG NATL 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 COMINTL BANK and VIRG NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and VIRG NATL BANKSH, you can compare the effects of market volatilities on COMINTL BANK and VIRG NATL 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 COMINTL BANK with a short position of VIRG NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and VIRG NATL.
Diversification Opportunities for COMINTL BANK and VIRG NATL
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between COMINTL and VIRG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 and VIRG NATL BANKSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRG NATL BANKSH and COMINTL BANK 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 COMINTL BANK ADR1 are associated (or correlated) with VIRG NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRG NATL BANKSH has no effect on the direction of COMINTL BANK i.e., COMINTL BANK and VIRG NATL go up and down completely randomly.
Pair Corralation between COMINTL BANK and VIRG NATL
Assuming the 90 days trading horizon COMINTL BANK is expected to generate 1.01 times less return on investment than VIRG NATL. But when comparing it to its historical volatility, COMINTL BANK ADR1 is 1.16 times less risky than VIRG NATL. It trades about 0.11 of its potential returns per unit of risk. VIRG NATL BANKSH is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,780 in VIRG NATL BANKSH on August 24, 2024 and sell it today you would earn a total of 200.00 from holding VIRG NATL BANKSH or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. VIRG NATL BANKSH
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| VIRG NATL BANKSH |
COMINTL BANK and VIRG NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and VIRG NATL
The main advantage of trading using opposite COMINTL BANK and VIRG NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK position performs unexpectedly, VIRG NATL 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 VIRG NATL will offset losses from the drop in VIRG NATL's long position.| COMINTL BANK vs. Superior Plus Corp | COMINTL BANK vs. NMI Holdings | COMINTL BANK vs. Origin Agritech | COMINTL BANK vs. SIVERS SEMICONDUCTORS AB |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |