Correlation Between Home Capital and Bankinter
Can any of the company-specific risk be diversified away by investing in both Home Capital 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 Home Capital and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Capital Rentals and Bankinter, you can compare the effects of market volatilities on Home Capital 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 Home Capital with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Capital and Bankinter.
Diversification Opportunities for Home Capital and Bankinter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Home and Bankinter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Home Capital Rentals and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Home Capital 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 Home Capital Rentals 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 Home Capital i.e., Home Capital and Bankinter go up and down completely randomly.
Pair Corralation between Home Capital and Bankinter
Assuming the 90 days trading horizon Home Capital Rentals is expected to under-perform the Bankinter. But the stock apears to be less risky and, when comparing its historical volatility, Home Capital Rentals is 1.02 times less risky than Bankinter. The stock trades about -0.21 of its potential returns per unit of risk. The Bankinter is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 738.00 in Bankinter on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Bankinter or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Capital Rentals vs. Bankinter
Performance |
| Timeline |
| Home Capital Rentals |
| Bankinter |
Home Capital and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Capital and Bankinter
The main advantage of trading using opposite Home Capital and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Capital 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.| Home Capital vs. Inhome Prime Properties | Home Capital vs. Borges Agricultural Industrial | Home Capital vs. Squirrel Media SA | Home Capital vs. Cellnex Telecom SA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |