Correlation Between Itau Unibanco and Bank of Hawaii
Can any of the company-specific risk be diversified away by investing in both Itau Unibanco and Bank of Hawaii 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 Itau Unibanco and Bank of Hawaii into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itau Unibanco Banco and Bank of Hawaii, you can compare the effects of market volatilities on Itau Unibanco and Bank of Hawaii 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 Itau Unibanco with a short position of Bank of Hawaii. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itau Unibanco and Bank of Hawaii.
Diversification Opportunities for Itau Unibanco and Bank of Hawaii
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Itau and Bank is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Itau Unibanco Banco and Bank of Hawaii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Hawaii and Itau Unibanco 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 Itau Unibanco Banco are associated (or correlated) with Bank of Hawaii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Hawaii has no effect on the direction of Itau Unibanco i.e., Itau Unibanco and Bank of Hawaii go up and down completely randomly.
Pair Corralation between Itau Unibanco and Bank of Hawaii
Given the investment horizon of 90 days Itau Unibanco Banco is expected to generate 1.15 times more return on investment than Bank of Hawaii. However, Itau Unibanco is 1.15 times more volatile than Bank of Hawaii. It trades about 0.43 of its potential returns per unit of risk. Bank of Hawaii is currently generating about -0.07 per unit of risk. If you would invest 507.00 in Itau Unibanco Banco on November 6, 2024 and sell it today you would earn a total of 69.00 from holding Itau Unibanco Banco or generate 13.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Itau Unibanco Banco vs. Bank of Hawaii
Performance |
| Timeline |
| Itau Unibanco Banco |
| Bank of Hawaii |
Itau Unibanco and Bank of Hawaii Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itau Unibanco and Bank of Hawaii
The main advantage of trading using opposite Itau Unibanco and Bank of Hawaii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itau Unibanco position performs unexpectedly, Bank of Hawaii 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 Bank of Hawaii will offset losses from the drop in Bank of Hawaii's long position.| Itau Unibanco vs. Grupo Financiero Galicia | Itau Unibanco vs. Banco Macro SA | Itau Unibanco vs. Banco Santander Brasil | Itau Unibanco vs. Lloyds Banking Group |
| Bank of Hawaii vs. CullenFrost Bankers | Bank of Hawaii vs. Citizens Financial Group | Bank of Hawaii vs. Cadence Bank | Bank of Hawaii vs. Truist Financial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |