Correlation Between National Bank and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both National Bank 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 National Bank and BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank Holdings and BANKINTER ADR 2007, you can compare the effects of market volatilities on National Bank 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 National Bank with a short position of BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and BANKINTER ADR.
Diversification Opportunities for National Bank and BANKINTER ADR
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and BANKINTER is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings 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 National Bank 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 National Bank Holdings 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 National Bank i.e., National Bank and BANKINTER ADR go up and down completely randomly.
Pair Corralation between National Bank and BANKINTER ADR
Assuming the 90 days horizon National Bank is expected to generate 1.83 times less return on investment than BANKINTER ADR. In addition to that, National Bank is 1.04 times more volatile than BANKINTER ADR 2007. It trades about 0.02 of its total potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.05 per unit of volatility. If you would invest 486.00 in BANKINTER ADR 2007 on August 30, 2024 and sell it today you would earn a total of 239.00 from holding BANKINTER ADR 2007 or generate 49.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank Holdings vs. BANKINTER ADR 2007
Performance |
| Timeline |
| National Bank Holdings |
| BANKINTER ADR 2007 |
National Bank and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and BANKINTER ADR
The main advantage of trading using opposite National Bank and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank 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.| National Bank vs. Austevoll Seafood ASA | National Bank vs. Webster Financial | National Bank vs. CONAGRA FOODS | National Bank vs. Beyond Meat |
| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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