Correlation Between Technomeca Aerospace and Bankinter
Can any of the company-specific risk be diversified away by investing in both Technomeca Aerospace 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 Technomeca Aerospace and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technomeca Aerospace SA and Bankinter, you can compare the effects of market volatilities on Technomeca Aerospace 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 Technomeca Aerospace with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technomeca Aerospace and Bankinter.
Diversification Opportunities for Technomeca Aerospace and Bankinter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Technomeca and Bankinter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Technomeca Aerospace SA and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Technomeca Aerospace 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 Technomeca Aerospace SA 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 has no effect on the direction of Technomeca Aerospace i.e., Technomeca Aerospace and Bankinter go up and down completely randomly.
Pair Corralation between Technomeca Aerospace and Bankinter
If you would invest 710.00 in Bankinter on October 26, 2024 and sell it today you would earn a total of 110.00 from holding Bankinter or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technomeca Aerospace SA vs. Bankinter
Performance |
| Timeline |
| Technomeca Aerospace |
| Bankinter |
Technomeca Aerospace and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technomeca Aerospace and Bankinter
The main advantage of trading using opposite Technomeca Aerospace and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technomeca Aerospace 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.| Technomeca Aerospace vs. Bankinter | Technomeca Aerospace vs. Borges Agricultural Industrial | Technomeca Aerospace vs. Energy Solar Tech | Technomeca Aerospace vs. Media Investment Optimization |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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