Correlation Between First Hawaiian and Bankinter
Can any of the company-specific risk be diversified away by investing in both First Hawaiian 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 First Hawaiian and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Hawaiian and Bankinter SA, you can compare the effects of market volatilities on First Hawaiian 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 First Hawaiian with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Hawaiian and Bankinter.
Diversification Opportunities for First Hawaiian and Bankinter
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Bankinter is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding First Hawaiian and Bankinter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA and First Hawaiian 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 First Hawaiian 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 SA has no effect on the direction of First Hawaiian i.e., First Hawaiian and Bankinter go up and down completely randomly.
Pair Corralation between First Hawaiian and Bankinter
Considering the 90-day investment horizon First Hawaiian is expected to generate 2.26 times less return on investment than Bankinter. But when comparing it to its historical volatility, First Hawaiian is 1.75 times less risky than Bankinter. It trades about 0.03 of its potential returns per unit of risk. Bankinter SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Bankinter SA on September 4, 2024 and sell it today you would earn a total of 156.00 from holding Bankinter SA or generate 24.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.07% |
| Values | Daily Returns |
First Hawaiian vs. Bankinter SA
Performance |
| Timeline |
| First Hawaiian |
| Bankinter SA |
First Hawaiian and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Hawaiian and Bankinter
The main advantage of trading using opposite First Hawaiian and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Hawaiian 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.| First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage Financial |
| Bankinter vs. First Hawaiian | Bankinter vs. Central Pacific Financial | Bankinter vs. Territorial Bancorp | Bankinter vs. Comerica |
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 Stocks Directory module to find actively traded stocks across global markets.
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