Correlation Between Banco Bilbao and Bancor Network

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Can any of the company-specific risk be diversified away by investing in both Banco Bilbao and Bancor Network 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 Banco Bilbao and Bancor Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Bilbao Viscaya and Bancor Network Token, you can compare the effects of market volatilities on Banco Bilbao and Bancor Network 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 Banco Bilbao with a short position of Bancor Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bilbao and Bancor Network.

Diversification Opportunities for Banco Bilbao and Bancor Network

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Banco and Bancor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bilbao Viscaya and Bancor Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancor Network Token and Banco Bilbao 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 Banco Bilbao Viscaya are associated (or correlated) with Bancor Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancor Network Token has no effect on the direction of Banco Bilbao i.e., Banco Bilbao and Bancor Network go up and down completely randomly.

Pair Corralation between Banco Bilbao and Bancor Network

Given the investment horizon of 90 days Banco Bilbao Viscaya is expected to generate 0.38 times more return on investment than Bancor Network. However, Banco Bilbao Viscaya is 2.65 times less risky than Bancor Network. It trades about 0.33 of its potential returns per unit of risk. Bancor Network Token is currently generating about -0.04 per unit of risk. If you would invest  451.00  in Banco Bilbao Viscaya on September 7, 2022 and sell it today you would earn a total of  125.00  from holding Banco Bilbao Viscaya or generate 27.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Banco Bilbao Viscaya  vs.  Bancor Network Token

 Performance (%) 
       Timeline  
Banco Bilbao Viscaya 
Banco Performance
16 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Banco Bilbao Viscaya are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Banco Bilbao sustained solid returns over the last few months and may actually be approaching a breakup point.

Banco Price Channel

Bancor Network Token 
Bancor Performance
0 of 100
Over the last 90 days Bancor Network Token has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for Bancor Network Token investors.

Bancor Price Channel

Banco Bilbao and Bancor Network Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Banco Bilbao and Bancor Network

The main advantage of trading using opposite Banco Bilbao and Bancor Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bilbao position performs unexpectedly, Bancor Network 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 Bancor Network will offset losses from the drop in Bancor Network's long position.
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The idea behind Banco Bilbao Viscaya and Bancor Network Token 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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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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