Correlation Between Uwharrie Capital and Bankinter

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

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

Diversification Opportunities for Uwharrie Capital and Bankinter

-0.44

Correlation Coefficient

Uwharrie Capital  Bankinter

Very good diversification

The 3 months correlation between Uwharrie and Bankinter is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp and Bankinter SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA ADR and Uwharrie 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 Uwharrie Capital Corp 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 SA ADR has no effect on the direction of Uwharrie Capital i.e., Uwharrie Capital and Bankinter go up and down completely randomly.

Pair Corralation between Uwharrie Capital and Bankinter

Given the investment horizon of 90 days Uwharrie Capital Corp is expected to generate 0.67 times more return on investment than Bankinter. However, Uwharrie Capital Corp is 1.5 times less risky than Bankinter. It trades about 0.07 of its potential returns per unit of risk. Bankinter SA ADR is currently generating about -0.03 per unit of risk. If you would invest  800.00  in Uwharrie Capital Corp on October 8, 2024 and sell it today you would earn a total of  50.00  from holding Uwharrie Capital Corp or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Uwharrie Capital Corp  vs.  Bankinter SA ADR

Uwharrie Capital Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Uwharrie Capital Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical indicators, Uwharrie Capital may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Bankinter SA ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bankinter SA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Bankinter is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Uwharrie Capital and Bankinter

The main advantage of trading using opposite Uwharrie Capital and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie 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.

The idea behind Uwharrie Capital Corp and Bankinter SA ADR 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.