Correlation Between AEON METALS and Santander Bank

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

By analyzing existing cross correlation between AEON METALS LTD and Santander Bank Polska, you can compare the effects of market volatilities on AEON METALS and Santander Bank 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 AEON METALS with a short position of Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON METALS and Santander Bank.

Diversification Opportunities for AEON METALS and Santander Bank

0.0

Correlation Coefficient

AEON METALS  Santander Bank

Pay attention - limited upside

The 3 months correlation between AEON and Santander is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEON METALS LTD and Santander Bank Polska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santander Bank Polska and AEON METALS 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 AEON METALS LTD are associated (or correlated) with Santander Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santander Bank Polska has no effect on the direction of AEON METALS i.e., AEON METALS and Santander Bank go up and down completely randomly.

Pair Corralation between AEON METALS and Santander Bank

If you would invest  10,685  in Santander Bank Polska on October 27, 2024 and sell it today you would earn a total of  1,155  from holding Santander Bank Polska or generate 10.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.0%
Values	Daily Returns

AEON METALS LTD  vs.  Santander Bank Polska

AEON METALS LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AEON METALS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AEON METALS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Santander Bank Polska

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Santander Bank Polska are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Santander Bank reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AEON METALS and Santander Bank

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

The idea behind AEON METALS LTD and Santander Bank Polska 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.