Correlation Between Millenium Hotels and Bankinter
Can any of the company-specific risk be diversified away by investing in both Millenium Hotels 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 Millenium Hotels and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Millenium Hotels Real and Bankinter, you can compare the effects of market volatilities on Millenium Hotels 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 Millenium Hotels with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millenium Hotels and Bankinter.
Diversification Opportunities for Millenium Hotels and Bankinter
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Millenium and Bankinter is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Millenium Hotels Real and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Millenium Hotels 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 Millenium Hotels Real 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 Millenium Hotels i.e., Millenium Hotels and Bankinter go up and down completely randomly.
Pair Corralation between Millenium Hotels and Bankinter
Assuming the 90 days trading horizon Millenium Hotels Real is expected to under-perform the Bankinter. But the stock apears to be less risky and, when comparing its historical volatility, Millenium Hotels Real is 1.54 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 0.41 of returns per unit of risk over similar time horizon. If you would invest 831.00 in Bankinter on December 1, 2024 and sell it today you would earn a total of 102.00 from holding Bankinter or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millenium Hotels Real vs. Bankinter
Performance |
| Timeline |
| Millenium Hotels Real |
| Bankinter |
Millenium Hotels and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millenium Hotels and Bankinter
The main advantage of trading using opposite Millenium Hotels and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millenium Hotels 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.| Millenium Hotels vs. Biotechnology Assets SA | Millenium Hotels vs. Melia Hotels | Millenium Hotels vs. Home Capital Rentals | Millenium Hotels vs. Ebro Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |