Correlation Between CAIXABANK UNADR and ROMERIKE SPAREBANK

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

By analyzing existing cross correlation between CAIXABANK UNADR 13 and ROMERIKE SPAREBANK NK, you can compare the effects of market volatilities on CAIXABANK UNADR and ROMERIKE SPAREBANK 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 CAIXABANK UNADR with a short position of ROMERIKE SPAREBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAIXABANK UNADR and ROMERIKE SPAREBANK.

Diversification Opportunities for CAIXABANK UNADR and ROMERIKE SPAREBANK

0.0

Correlation Coefficient

CAIXABANK UNADR  ROMERIKE SPAREBANK

Pay attention - limited upside

The 3 months correlation between CAIXABANK and ROMERIKE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAIXABANK UNADR 13 and ROMERIKE SPAREBANK NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROMERIKE SPAREBANK and CAIXABANK UNADR 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 CAIXABANK UNADR 13 are associated (or correlated) with ROMERIKE SPAREBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROMERIKE SPAREBANK has no effect on the direction of CAIXABANK UNADR i.e., CAIXABANK UNADR and ROMERIKE SPAREBANK go up and down completely randomly.

Pair Corralation between CAIXABANK UNADR and ROMERIKE SPAREBANK

If you would invest  158.00  in CAIXABANK UNADR 13 on December 31, 2024 and sell it today you would earn a total of  78.00  from holding CAIXABANK UNADR 13 or generate 49.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CAIXABANK UNADR 13  vs.  ROMERIKE SPAREBANK NK

CAIXABANK UNADR 13

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in CAIXABANK UNADR 13 are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CAIXABANK UNADR reported solid returns over the last few months and may actually be approaching a breakup point.

ROMERIKE SPAREBANK

Risk-Adjusted Performance

Very Weak

Over the last 90 days ROMERIKE SPAREBANK NK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ROMERIKE SPAREBANK is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CAIXABANK UNADR and ROMERIKE SPAREBANK

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

The idea behind CAIXABANK UNADR 13 and ROMERIKE SPAREBANK NK 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.