Correlation Between Inverfinit and BK Variable
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By analyzing existing cross correlation between Inverfinit de Valores and BK Variable Internacional, you can compare the effects of market volatilities on Inverfinit and BK Variable 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 Inverfinit with a short position of BK Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inverfinit and BK Variable.
Diversification Opportunities for Inverfinit and BK Variable
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inverfinit and 0P0000120T is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Inverfinit de Valores and BK Variable Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK Variable Internacional and Inverfinit 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 Inverfinit de Valores are associated (or correlated) with BK Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK Variable Internacional has no effect on the direction of Inverfinit i.e., Inverfinit and BK Variable go up and down completely randomly.
Pair Corralation between Inverfinit and BK Variable
Assuming the 90 days trading horizon Inverfinit is expected to generate 1.53 times less return on investment than BK Variable. But when comparing it to its historical volatility, Inverfinit de Valores is 1.61 times less risky than BK Variable. It trades about 0.1 of its potential returns per unit of risk. BK Variable Internacional is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,293 in BK Variable Internacional on September 3, 2024 and sell it today you would earn a total of 443.00 from holding BK Variable Internacional or generate 34.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inverfinit de Valores vs. BK Variable Internacional
Performance |
| Timeline |
| Inverfinit de Valores |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| BK Variable Internacional |
Inverfinit and BK Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inverfinit and BK Variable
The main advantage of trading using opposite Inverfinit and BK Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inverfinit position performs unexpectedly, BK Variable 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 BK Variable will offset losses from the drop in BK Variable's long position.| Inverfinit vs. BK Variable Internacional | Inverfinit vs. Naranja Renta Fija | Inverfinit vs. Indexa Ms Rentabilidad | Inverfinit vs. Myinvestor Indexado Global |
| BK Variable vs. Metrovacesa SA | BK Variable vs. Endurance Motive SA | BK Variable vs. Elecnor SA | BK Variable vs. Mapfre |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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