Correlation Between SANTANDER and VanEck Crypto

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

By analyzing existing cross correlation between SANTANDER UK 10 and VanEck Crypto Blockchain, you can compare the effects of market volatilities on SANTANDER and VanEck Crypto 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 SANTANDER with a short position of VanEck Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and VanEck Crypto.

Diversification Opportunities for SANTANDER and VanEck Crypto

0.56

Correlation Coefficient

SANTANDER  VanEck Crypto

Very weak diversification

The 3 months correlation between SANTANDER and VanEck is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 10 and VanEck Crypto Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Crypto Blockchain and SANTANDER 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 SANTANDER UK 10 are associated (or correlated) with VanEck Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Crypto Blockchain has no effect on the direction of SANTANDER i.e., SANTANDER and VanEck Crypto go up and down completely randomly.

Pair Corralation between SANTANDER and VanEck Crypto

Assuming the 90 days trading horizon SANTANDER is expected to generate 206.94 times less return on investment than VanEck Crypto. But when comparing it to its historical volatility, SANTANDER UK 10 is 14.51 times less risky than VanEck Crypto. It trades about 0.02 of its potential returns per unit of risk. VanEck Crypto Blockchain is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  705.00  in VanEck Crypto Blockchain on September 10, 2024 and sell it today you would earn a total of  670.00  from holding VanEck Crypto Blockchain or generate 95.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

SANTANDER UK 10  vs.  VanEck Crypto Blockchain

SANTANDER UK 10

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SANTANDER UK 10 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, SANTANDER is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

VanEck Crypto Blockchain

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck Crypto Blockchain are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, VanEck Crypto unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SANTANDER and VanEck Crypto

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

The idea behind SANTANDER UK 10 and VanEck Crypto Blockchain 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 Commodity Directory module to find actively traded commodities issued by global exchanges.