Correlation Between Banco Bilbao and Pyxus International

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

By analyzing existing cross correlation between Banco Bilbao Vizcaya and Pyxus International, you can compare the effects of market volatilities on Banco Bilbao and Pyxus International 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 Pyxus International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bilbao and Pyxus International.

Diversification Opportunities for Banco Bilbao and Pyxus International

-0.9

Correlation Coefficient

Banco Bilbao  Pyxus International

Pay attention - limited upside

The 3 months correlation between Banco and Pyxus is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bilbao Vizcaya and Pyxus International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyxus International 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 Vizcaya are associated (or correlated) with Pyxus International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyxus International has no effect on the direction of Banco Bilbao i.e., Banco Bilbao and Pyxus International go up and down completely randomly.

Pair Corralation between Banco Bilbao and Pyxus International

Assuming the 90 days horizon Banco Bilbao Vizcaya is expected to generate 1.13 times more return on investment than Pyxus International. However, Banco Bilbao is 1.13 times more volatile than Pyxus International. It trades about 0.15 of its potential returns per unit of risk. Pyxus International is currently generating about -0.31 per unit of risk. If you would invest  1,521  in Banco Bilbao Vizcaya on July 5, 2025 and sell it today you would earn a total of  414.00  from holding Banco Bilbao Vizcaya or generate 27.22% return on investment over 90 days.

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

Banco Bilbao Vizcaya  vs.  Pyxus International

Banco Bilbao Vizcaya

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Banco Bilbao Vizcaya are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Banco Bilbao reported solid returns over the last few months and may actually be approaching a breakup point.

Pyxus International

Risk-Adjusted Performance

Weakest

Over the last 90 days Pyxus International 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 basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Banco Bilbao and Pyxus International

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

The idea behind Banco Bilbao Vizcaya and Pyxus International 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.