Correlation Between GLG LIFE and Banco Santander
Can any of the company-specific risk be diversified away by investing in both GLG LIFE 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 GLG LIFE and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG LIFE TECH and Banco Santander SA, you can compare the effects of market volatilities on GLG LIFE 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 GLG LIFE with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and Banco Santander.
Diversification Opportunities for GLG LIFE and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH 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 GLG LIFE 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 GLG LIFE TECH 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 GLG LIFE i.e., GLG LIFE and Banco Santander go up and down completely randomly.
Pair Corralation between GLG LIFE and Banco Santander
If you would invest 2.00 in GLG LIFE TECH on September 5, 2024 and sell it today you would earn a total of 0.00 from holding GLG LIFE TECH or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
GLG LIFE TECH vs. Banco Santander SA
Performance |
| Timeline |
| GLG LIFE TECH |
| Banco Santander SA |
GLG LIFE and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and Banco Santander
The main advantage of trading using opposite GLG LIFE and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE 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.| GLG LIFE vs. Lery Seafood Group | GLG LIFE vs. AUSNUTRIA DAIRY | GLG LIFE vs. AUSTEVOLL SEAFOOD | GLG LIFE vs. CAREER EDUCATION |
| Banco Santander vs. INDCOMMBK CHINA ADR20 | Banco Santander vs. CHINA BANK ADR20 | Banco Santander vs. AGRICULTBK HADR25 YC | Banco Santander vs. COMMONWBK AUSTRSPADRS |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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