Correlation Between Banco De and Banco Internacional
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By analyzing existing cross correlation between Banco de Credito and Banco Internacional del, you can compare the effects of market volatilities on Banco De and Banco Internacional 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 Banco De with a short position of Banco Internacional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and Banco Internacional.
Diversification Opportunities for Banco De and Banco Internacional
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Banco and Banco is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Credito and Banco Internacional del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Internacional del and Banco De 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 Banco de Credito are associated (or correlated) with Banco Internacional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Internacional del has no effect on the direction of Banco De i.e., Banco De and Banco Internacional go up and down completely randomly.
Pair Corralation between Banco De and Banco Internacional
Assuming the 90 days trading horizon Banco de Credito is expected to generate 1.16 times more return on investment than Banco Internacional. However, Banco De is 1.16 times more volatile than Banco Internacional del. It trades about 0.25 of its potential returns per unit of risk. Banco Internacional del is currently generating about -0.45 per unit of risk. If you would invest 379.00 in Banco de Credito on November 28, 2024 and sell it today you would earn a total of 26.00 from holding Banco de Credito or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
Banco de Credito vs. Banco Internacional del
Performance |
| Timeline |
| Banco de Credito |
| Banco Internacional del |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Banco De and Banco Internacional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and Banco Internacional
The main advantage of trading using opposite Banco De and Banco Internacional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De position performs unexpectedly, Banco Internacional 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 Internacional will offset losses from the drop in Banco Internacional's long position.The idea behind Banco de Credito and Banco Internacional del pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Banco Internacional vs. Corporacion Aceros Arequipa | Banco Internacional vs. Union de Cervecerias | Banco Internacional vs. Nexa Resources Peru | Banco Internacional vs. Citigroup |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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