Correlation Between Aedas Homes and Bankinter

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

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

Diversification Opportunities for Aedas Homes and Bankinter

-0.31

Correlation Coefficient

Aedas Homes  Bankinter

Very good diversification

The 3 months correlation between Aedas and Bankinter is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SL and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Aedas Homes 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 Aedas Homes SL 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 has no effect on the direction of Aedas Homes i.e., Aedas Homes and Bankinter go up and down completely randomly.

Pair Corralation between Aedas Homes and Bankinter

Assuming the 90 days trading horizon Aedas Homes SL is expected to under-perform the Bankinter. In addition to that, Aedas Homes is 2.26 times more volatile than Bankinter. It trades about -0.06 of its total potential returns per unit of risk. Bankinter is currently generating about 0.21 per unit of volatility. If you would invest  1,038  in Bankinter on May 3, 2025 and sell it today you would earn a total of  212.00  from holding Bankinter or generate 20.42% return on investment over 90 days.

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

Aedas Homes SL  vs.  Bankinter

Aedas Homes SL

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aedas Homes SL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Bankinter

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bankinter are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bankinter exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aedas Homes and Bankinter

The main advantage of trading using opposite Aedas Homes and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedas Homes 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 Aedas Homes SL and Bankinter 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 Stocks Directory module to find actively traded stocks across global markets.