Correlation Between FAST RETAIL and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL 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 FAST RETAIL and BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and BANKINTER ADR 2007, you can compare the effects of market volatilities on FAST RETAIL 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 FAST RETAIL with a short position of BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and BANKINTER ADR.
Diversification Opportunities for FAST RETAIL and BANKINTER ADR
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FAST and BANKINTER is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR 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 FAST RETAIL 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 FAST RETAIL ADR 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 FAST RETAIL i.e., FAST RETAIL and BANKINTER ADR go up and down completely randomly.
Pair Corralation between FAST RETAIL and BANKINTER ADR
Assuming the 90 days trading horizon FAST RETAIL ADR is expected to generate 0.91 times more return on investment than BANKINTER ADR. However, FAST RETAIL ADR is 1.1 times less risky than BANKINTER ADR. It trades about 0.06 of its potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.05 per unit of risk. If you would invest 1,830 in FAST RETAIL ADR on October 25, 2024 and sell it today you would earn a total of 1,130 from holding FAST RETAIL ADR or generate 61.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAIL ADR vs. BANKINTER ADR 2007
Performance |
| Timeline |
| FAST RETAIL ADR |
| BANKINTER ADR 2007 |
FAST RETAIL and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and BANKINTER ADR
The main advantage of trading using opposite FAST RETAIL and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL 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.| FAST RETAIL vs. SIERRA METALS | FAST RETAIL vs. Zijin Mining Group | FAST RETAIL vs. Kaiser Aluminum | FAST RETAIL vs. ARDAGH METAL PACDL 0001 |
| BANKINTER ADR vs. SK TELECOM TDADR | BANKINTER ADR vs. Charter Communications | BANKINTER ADR vs. COMBA TELECOM SYST | BANKINTER ADR vs. CyberArk Software |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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