Correlation Between Bancfirst Corp and Banco Latinoamericano

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

Diversification Opportunities for Bancfirst Corp and Banco Latinoamericano

-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Bancfirst and Banco is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bancfirst Corp and Banco Latinoamericano DE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Latinoamericano and Bancfirst Corp 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 Bancfirst Corp are associated (or correlated) with Banco Latinoamericano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Latinoamericano has no effect on the direction of Bancfirst Corp i.e., Bancfirst Corp and Banco Latinoamericano go up and down completely randomly.

Pair Corralation between Bancfirst Corp and Banco Latinoamericano

Given the investment horizon of 90 days Bancfirst Corp is expected to generate 0.69 times more return on investment than Banco Latinoamericano. However, Bancfirst Corp is 1.44 times less risky than Banco Latinoamericano. It trades about 0.22 of its potential returns per unit of risk. Banco Latinoamericano DE is currently generating about -0.11 per unit of risk. If you would invest  8,837  in Bancfirst Corp on March 27, 2022 and sell it today you would earn a total of  661.00  from holding Bancfirst Corp or generate 7.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Bancfirst Corp  vs.  Banco Latinoamericano DE

 Performance (%) 
      Timeline 
Bancfirst Corp 
Bancfirst Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bancfirst Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Bancfirst Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Forward Annual Dividend Yield
0.015
Payout Ratio
0.3
Last Split Factor
2:1
Forward Annual Dividend Rate
1.44
Dividend Date
2022-07-15
Ex Dividend Date
2022-06-29
Last Split Date
2017-08-01

Bancfirst Price Channel

Banco Latinoamericano 
Banco Performance
0 of 100
Over the last 90 days Banco Latinoamericano DE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0762
Payout Ratio
0.6
Forward Annual Dividend Rate
1.0
Dividend Date
2022-06-01
Ex Dividend Date
2022-05-13

Banco Price Channel

Bancfirst Corp and Banco Latinoamericano Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bancfirst Corp and Banco Latinoamericano

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

Bancfirst Corp

Pair trading matchups for Bancfirst Corp

The idea behind Bancfirst Corp and Banco Latinoamericano DE 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.

Banco Latinoamericano DE

Pair trading matchups for Banco Latinoamericano

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 CEO Directory module to screen CEOs from public companies around the world.

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