Correlation Between Bank of Hawaii and Credit Agricole
Can any of the company-specific risk be diversified away by investing in both Bank of Hawaii and Credit Agricole 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 Bank of Hawaii and Credit Agricole into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Hawaii and Credit Agricole SA, you can compare the effects of market volatilities on Bank of Hawaii and Credit Agricole 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 Bank of Hawaii with a short position of Credit Agricole. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Hawaii and Credit Agricole.
Diversification Opportunities for Bank of Hawaii and Credit Agricole
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Credit is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Hawaii and Credit Agricole SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Agricole SA and Bank of Hawaii 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 Bank of Hawaii are associated (or correlated) with Credit Agricole. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Agricole SA has no effect on the direction of Bank of Hawaii i.e., Bank of Hawaii and Credit Agricole go up and down completely randomly.
Pair Corralation between Bank of Hawaii and Credit Agricole
Considering the 90-day investment horizon Bank of Hawaii is expected to under-perform the Credit Agricole. In addition to that, Bank of Hawaii is 1.37 times more volatile than Credit Agricole SA. It trades about -0.07 of its total potential returns per unit of risk. Credit Agricole SA is currently generating about 0.36 per unit of volatility. If you would invest 656.00 in Credit Agricole SA on December 4, 2024 and sell it today you would earn a total of 179.00 from holding Credit Agricole SA or generate 27.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of Hawaii vs. Credit Agricole SA
Performance |
Timeline |
Bank of Hawaii |
Credit Agricole SA |
Bank of Hawaii and Credit Agricole Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Hawaii and Credit Agricole
The main advantage of trading using opposite Bank of Hawaii and Credit Agricole positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Hawaii position performs unexpectedly, Credit Agricole 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 Credit Agricole will offset losses from the drop in Credit Agricole's long position.Bank of Hawaii vs. Central Pacific Financial | Bank of Hawaii vs. Territorial Bancorp | Bank of Hawaii vs. First Bancorp | Bank of Hawaii vs. Hancock Whitney Corp |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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