Correlation Between Canadian Imperial and Banco Bilbao
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and Banco Bilbao 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 Canadian Imperial and Banco Bilbao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and Banco Bilbao Viscaya, you can compare the effects of market volatilities on Canadian Imperial and Banco Bilbao 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 Canadian Imperial with a short position of Banco Bilbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Banco Bilbao.
Diversification Opportunities for Canadian Imperial and Banco Bilbao
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canadian and Banco is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Banco Bilbao Viscaya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Bilbao Viscaya and Canadian Imperial 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 Canadian Imperial Bank are associated (or correlated) with Banco Bilbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Bilbao Viscaya has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and Banco Bilbao go up and down completely randomly.
Pair Corralation between Canadian Imperial and Banco Bilbao
Allowing for the 90-day total investment horizon Canadian Imperial Bank is expected to generate 0.61 times more return on investment than Banco Bilbao. However, Canadian Imperial Bank is 1.63 times less risky than Banco Bilbao. It trades about 0.26 of its potential returns per unit of risk. Banco Bilbao Viscaya is currently generating about 0.04 per unit of risk. If you would invest 4,638 in Canadian Imperial Bank on September 12, 2024 and sell it today you would earn a total of 2,010 from holding Canadian Imperial Bank or generate 43.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Imperial Bank vs. Banco Bilbao Viscaya
Performance |
| Timeline |
| Canadian Imperial Bank |
| Banco Bilbao Viscaya |
Canadian Imperial and Banco Bilbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and Banco Bilbao
The main advantage of trading using opposite Canadian Imperial and Banco Bilbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, Banco Bilbao 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 Banco Bilbao will offset losses from the drop in Banco Bilbao's long position.| Canadian Imperial vs. Bank of America | Canadian Imperial vs. Victory Integrity Smallmid Cap | Canadian Imperial vs. Hilton Worldwide Holdings | Canadian Imperial vs. NVIDIA |
| Banco Bilbao vs. Barclays PLC ADR | Banco Bilbao vs. ING Group NV | Banco Bilbao vs. Banco Santander SA | Banco Bilbao vs. HSBC Holdings PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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