Correlation Between Grupo Ecoener and Bankinter
Can any of the company-specific risk be diversified away by investing in both Grupo Ecoener 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 Grupo Ecoener and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Ecoener SA and Bankinter, you can compare the effects of market volatilities on Grupo Ecoener 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 Grupo Ecoener with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Ecoener and Bankinter.
Diversification Opportunities for Grupo Ecoener and Bankinter
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Bankinter is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Ecoener SA and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Grupo Ecoener 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 Grupo Ecoener SA 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 has no effect on the direction of Grupo Ecoener i.e., Grupo Ecoener and Bankinter go up and down completely randomly.
Pair Corralation between Grupo Ecoener and Bankinter
Assuming the 90 days trading horizon Grupo Ecoener is expected to generate 1.35 times less return on investment than Bankinter. In addition to that, Grupo Ecoener is 1.38 times more volatile than Bankinter. It trades about 0.05 of its total potential returns per unit of risk. Bankinter is currently generating about 0.09 per unit of volatility. If you would invest 553.00 in Bankinter on September 4, 2024 and sell it today you would earn a total of 195.00 from holding Bankinter or generate 35.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Ecoener SA vs. Bankinter
Performance |
| Timeline |
| Grupo Ecoener SA |
| Bankinter |
Grupo Ecoener and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Ecoener and Bankinter
The main advantage of trading using opposite Grupo Ecoener and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Ecoener 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.| Grupo Ecoener vs. Bankinter | Grupo Ecoener vs. NH Hoteles | Grupo Ecoener vs. Elaia Investment Spain | Grupo Ecoener vs. Atrys Health SL |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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