Correlation Between MAVEN WIRELESS and Banco Santander
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and Banco 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 MAVEN WIRELESS and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and Banco Santander SA, you can compare the effects of market volatilities on MAVEN WIRELESS and Banco 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 MAVEN WIRELESS with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and Banco Santander.
Diversification Opportunities for MAVEN WIRELESS and Banco Santander
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAVEN and Banco is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander SA has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and Banco Santander go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and Banco Santander
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the Banco Santander. In addition to that, MAVEN WIRELESS is 1.2 times more volatile than Banco Santander SA. It trades about -0.32 of its total potential returns per unit of risk. Banco Santander SA is currently generating about 0.08 per unit of volatility. If you would invest 452.00 in Banco Santander SA on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Banco Santander SA or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. Banco Santander SA
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| Banco Santander SA |
MAVEN WIRELESS and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and Banco Santander
The main advantage of trading using opposite MAVEN WIRELESS and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, Banco 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| MAVEN WIRELESS vs. Superior Plus Corp | MAVEN WIRELESS vs. SIVERS SEMICONDUCTORS AB | MAVEN WIRELESS vs. Norsk Hydro ASA | MAVEN WIRELESS vs. Reliance Steel Aluminum |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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