Correlation Between BANKINTER ADR and M/I Homes

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

By analyzing existing cross correlation between BANKINTER ADR 2007 and MI Homes, you can compare the effects of market volatilities on BANKINTER ADR and M/I Homes 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 BANKINTER ADR with a short position of M/I Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and M/I Homes.

Diversification Opportunities for BANKINTER ADR and M/I Homes

0.39

Correlation Coefficient

BANKINTER ADR  M/I Homes

Weak diversification

The 3 months correlation between BANKINTER and M/I is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and MI Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M/I Homes and BANKINTER ADR 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 BANKINTER ADR 2007 are associated (or correlated) with M/I Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M/I Homes has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and M/I Homes go up and down completely randomly.

Pair Corralation between BANKINTER ADR and M/I Homes

Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 0.68 times more return on investment than M/I Homes. However, BANKINTER ADR 2007 is 1.46 times less risky than M/I Homes. It trades about 0.17 of its potential returns per unit of risk. MI Homes is currently generating about 0.05 per unit of risk. If you would invest  951.00  in BANKINTER ADR 2007 on April 24, 2025 and sell it today you would earn a total of  149.00  from holding BANKINTER ADR 2007 or generate 15.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BANKINTER ADR 2007  vs.  MI Homes

BANKINTER ADR 2007

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BANKINTER ADR 2007 are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, BANKINTER ADR reported solid returns over the last few months and may actually be approaching a breakup point.

M/I Homes

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MI Homes are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, M/I Homes may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BANKINTER ADR and M/I Homes

The main advantage of trading using opposite BANKINTER ADR and M/I Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, M/I Homes 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 M/I Homes will offset losses from the drop in M/I Homes' long position.

The idea behind BANKINTER ADR 2007 and MI Homes 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.