Correlation Between Banco Santander and Bank Ochrony
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Bank Ochrony 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 Santander and Bank Ochrony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander SA and Bank Ochrony rodowiska, you can compare the effects of market volatilities on Banco Santander and Bank Ochrony 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 Santander with a short position of Bank Ochrony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Bank Ochrony.
Diversification Opportunities for Banco Santander and Bank Ochrony
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Banco and Bank is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Bank Ochrony rodowiska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Ochrony rodowiska and Banco 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 Banco Santander SA are associated (or correlated) with Bank Ochrony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Ochrony rodowiska has no effect on the direction of Banco Santander i.e., Banco Santander and Bank Ochrony go up and down completely randomly.
Pair Corralation between Banco Santander and Bank Ochrony
Assuming the 90 days trading horizon Banco Santander SA is expected to generate 0.86 times more return on investment than Bank Ochrony. However, Banco Santander SA is 1.16 times less risky than Bank Ochrony. It trades about 0.28 of its potential returns per unit of risk. Bank Ochrony rodowiska is currently generating about 0.19 per unit of risk. If you would invest 1,877 in Banco Santander SA on December 29, 2024 and sell it today you would earn a total of 783.00 from holding Banco Santander SA or generate 41.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Banco Santander SA vs. Bank Ochrony rodowiska
Performance |
Timeline |
Banco Santander SA |
Bank Ochrony rodowiska |
Banco Santander and Bank Ochrony Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Banco Santander and Bank Ochrony
The main advantage of trading using opposite Banco Santander and Bank Ochrony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Bank Ochrony 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 Bank Ochrony will offset losses from the drop in Bank Ochrony's long position.Banco Santander vs. Road Studio SA | Banco Santander vs. Alior Bank SA | Banco Santander vs. Examobile SA | Banco Santander vs. Immobile |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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