Correlation Between OAKTRSPECLENDNEW and BANKINTER ADR

Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW and BANKINTER ADR 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 OAKTRSPECLENDNEW and BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OAKTRSPECLENDNEW and BANKINTER ADR 2007, you can compare the effects of market volatilities on OAKTRSPECLENDNEW and BANKINTER ADR 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 OAKTRSPECLENDNEW with a short position of BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and BANKINTER ADR.

Diversification Opportunities for OAKTRSPECLENDNEW and BANKINTER ADR

0.1

Correlation Coefficient

OAKTRSPECLENDNEW  BANKINTER ADR

Average diversification

The 3 months correlation between OAKTRSPECLENDNEW and BANKINTER is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW are associated (or correlated) with BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and BANKINTER ADR go up and down completely randomly.

Pair Corralation between OAKTRSPECLENDNEW and BANKINTER ADR

Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 17.03 times less return on investment than BANKINTER ADR. But when comparing it to its historical volatility, OAKTRSPECLENDNEW is 2.07 times less risky than BANKINTER ADR. It trades about 0.0 of its potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  698.00  in BANKINTER ADR 2007 on September 28, 2024 and sell it today you would earn a total of  7.00  from holding BANKINTER ADR 2007 or generate 1.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

OAKTRSPECLENDNEW  vs.  BANKINTER ADR 2007

OAKTRSPECLENDNEW

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in OAKTRSPECLENDNEW are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, OAKTRSPECLENDNEW is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

BANKINTER ADR 2007

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BANKINTER ADR 2007 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, BANKINTER ADR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with OAKTRSPECLENDNEW and BANKINTER ADR

The main advantage of trading using opposite OAKTRSPECLENDNEW and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW position performs unexpectedly, BANKINTER ADR 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 ADR will offset losses from the drop in BANKINTER ADR's long position.

The idea behind OAKTRSPECLENDNEW and BANKINTER ADR 2007 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.