Correlation Between AMG Advanced and SANTANDER
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and SANTANDER 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 AMG Advanced and SANTANDER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and SANTANDER UK 10, you can compare the effects of market volatilities on AMG Advanced and SANTANDER 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 AMG Advanced with a short position of SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and SANTANDER.
Diversification Opportunities for AMG Advanced and SANTANDER
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMG and SANTANDER is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and SANTANDER UK 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 10 and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 10 has no effect on the direction of AMG Advanced i.e., AMG Advanced and SANTANDER go up and down completely randomly.
Pair Corralation between AMG Advanced and SANTANDER
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the SANTANDER. In addition to that, AMG Advanced is 2.56 times more volatile than SANTANDER UK 10. It trades about -0.06 of its total potential returns per unit of risk. SANTANDER UK 10 is currently generating about 0.07 per unit of volatility. If you would invest 11,827 in SANTANDER UK 10 on September 4, 2024 and sell it today you would earn a total of 4,043 from holding SANTANDER UK 10 or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. SANTANDER UK 10
Performance |
| Timeline |
| AMG Advanced Metallu |
| SANTANDER UK 10 |
AMG Advanced and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and SANTANDER
The main advantage of trading using opposite AMG Advanced and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, SANTANDER 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 will offset losses from the drop in SANTANDER's long position.| AMG Advanced vs. Coor Service Management | AMG Advanced vs. Telecom Italia SpA | AMG Advanced vs. Zoom Video Communications | AMG Advanced vs. Vulcan Materials Co |
| SANTANDER vs. Metals Exploration Plc | SANTANDER vs. Bell Food Group | SANTANDER vs. AMG Advanced Metallurgical | SANTANDER vs. Bisichi Mining PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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