Correlation Between Caixabank and Northern Trust
Can any of the company-specific risk be diversified away by investing in both Caixabank and Northern Trust 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 and Northern Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA ADR and Northern Trust, you can compare the effects of market volatilities on Caixabank and Northern Trust 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 with a short position of Northern Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and Northern Trust.
Diversification Opportunities for Caixabank and Northern Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caixabank and Northern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA ADR and Northern Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Trust and Caixabank 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 SA ADR are associated (or correlated) with Northern Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Trust has no effect on the direction of Caixabank i.e., Caixabank and Northern Trust go up and down completely randomly.
Pair Corralation between Caixabank and Northern Trust
If you would invest 156.00 in Caixabank SA ADR on January 20, 2024 and sell it today you would earn a total of 13.00 from holding Caixabank SA ADR or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Caixabank SA ADR vs. Northern Trust
Performance |
| Timeline |
| Caixabank SA ADR |
| Northern Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caixabank and Northern Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caixabank and Northern Trust
The main advantage of trading using opposite Caixabank and Northern Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank position performs unexpectedly, Northern Trust 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 Northern Trust will offset losses from the drop in Northern Trust's long position.| Caixabank vs. Permanent TSB Group | Caixabank vs. Bank of Botetourt | Caixabank vs. Cashmere Valley Bank | Caixabank vs. Oak Valley Bancorp |
| Northern Trust vs. Hurco Companies | Northern Trust vs. Forsys Metals Corp | Northern Trust vs. Jacobs Solutions | Northern Trust vs. Hawkins |
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 the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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