Correlation Between JAPAN POST and Bankinter
Can any of the company-specific risk be diversified away by investing in both JAPAN POST 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 JAPAN POST and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JAPAN POST BANK and Bankinter SA ADR, you can compare the effects of market volatilities on JAPAN POST 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 JAPAN POST with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of JAPAN POST and Bankinter.
Diversification Opportunities for JAPAN POST and Bankinter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JAPAN and Bankinter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JAPAN POST BANK and Bankinter SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA ADR and JAPAN POST 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 JAPAN POST BANK 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 ADR has no effect on the direction of JAPAN POST i.e., JAPAN POST and Bankinter go up and down completely randomly.
Pair Corralation between JAPAN POST and Bankinter
Assuming the 90 days horizon JAPAN POST is expected to generate 2.27 times less return on investment than Bankinter. But when comparing it to its historical volatility, JAPAN POST BANK is 3.77 times less risky than Bankinter. It trades about 0.06 of its potential returns per unit of risk. Bankinter SA ADR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Bankinter SA ADR on August 26, 2024 and sell it today you would earn a total of 221.00 from holding Bankinter SA ADR or generate 39.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.57% |
| Values | Daily Returns |
JAPAN POST BANK vs. Bankinter SA ADR
Performance |
| Timeline |
| JAPAN POST BANK |
| Bankinter SA ADR |
JAPAN POST and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JAPAN POST and Bankinter
The main advantage of trading using opposite JAPAN POST and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JAPAN POST 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.| JAPAN POST vs. PSB Holdings | JAPAN POST vs. United Overseas Bank | JAPAN POST vs. Turkiye Garanti Bankasi |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |