Correlation Between SANTANDER and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both SANTANDER and Amundi Treasury 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 Amundi Treasury 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 Amundi Treasury Bond, you can compare the effects of market volatilities on SANTANDER and Amundi Treasury 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 Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and Amundi Treasury.
Diversification Opportunities for SANTANDER and Amundi Treasury
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SANTANDER and Amundi is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 10 and Amundi Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Treasury Bond 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 Amundi Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Treasury Bond has no effect on the direction of SANTANDER i.e., SANTANDER and Amundi Treasury go up and down completely randomly.
Pair Corralation between SANTANDER and Amundi Treasury
Assuming the 90 days trading horizon SANTANDER UK 10 is expected to generate 0.38 times more return on investment than Amundi Treasury. However, SANTANDER UK 10 is 2.64 times less risky than Amundi Treasury. It trades about 0.0 of its potential returns per unit of risk. Amundi Treasury Bond is currently generating about -0.11 per unit of risk. If you would invest 15,640 in SANTANDER UK 10 on September 6, 2024 and sell it today you would earn a total of 0.00 from holding SANTANDER UK 10 or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
SANTANDER UK 10 vs. Amundi Treasury Bond
Performance |
Timeline |
SANTANDER UK 10 |
Amundi Treasury Bond |
SANTANDER and Amundi Treasury Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SANTANDER and Amundi Treasury
The main advantage of trading using opposite SANTANDER and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANTANDER position performs unexpectedly, Amundi Treasury 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 Amundi Treasury will offset losses from the drop in Amundi Treasury's long position.SANTANDER vs. Telecom Italia SpA | SANTANDER vs. Gamma Communications PLC | SANTANDER vs. Cellnex Telecom SA | SANTANDER vs. Cairo Communication SpA |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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