Correlation Between WESANA HEALTH and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH and BANKINTER ADR 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 WESANA HEALTH and BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and BANKINTER ADR 2007, you can compare the effects of market volatilities on WESANA HEALTH and BANKINTER ADR 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 WESANA HEALTH with a short position of BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and BANKINTER ADR.
Diversification Opportunities for WESANA HEALTH and BANKINTER ADR
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between WESANA and BANKINTER is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 and WESANA HEALTH 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 WESANA HEALTH HOLD are associated (or correlated) with BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of WESANA HEALTH i.e., WESANA HEALTH and BANKINTER ADR go up and down completely randomly.
Pair Corralation between WESANA HEALTH and BANKINTER ADR
If you would invest 684.00 in BANKINTER ADR 2007 on October 16, 2024 and sell it today you would earn a total of 86.00 from holding BANKINTER ADR 2007 or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESANA HEALTH HOLD vs. BANKINTER ADR 2007
Performance |
| Timeline |
| WESANA HEALTH HOLD |
| BANKINTER ADR 2007 |
WESANA HEALTH and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESANA HEALTH and BANKINTER ADR
The main advantage of trading using opposite WESANA HEALTH and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH position performs unexpectedly, BANKINTER ADR 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 ADR will offset losses from the drop in BANKINTER ADR's long position.| WESANA HEALTH vs. Methode Electronics | WESANA HEALTH vs. TYSON FOODS A | WESANA HEALTH vs. Benchmark Electronics | WESANA HEALTH vs. CN MODERN DAIRY |
| BANKINTER ADR vs. Sterling Construction | BANKINTER ADR vs. AWILCO DRILLING PLC | BANKINTER ADR vs. PURETECH HEALTH PLC | BANKINTER ADR vs. WESANA HEALTH HOLD |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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