Correlation Between Aguas Andinas and Banco Santander
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By analyzing existing cross correlation between Aguas Andinas SA and Banco Santander Chile, you can compare the effects of market volatilities on Aguas Andinas 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 Aguas Andinas with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aguas Andinas and Banco Santander.
Diversification Opportunities for Aguas Andinas and Banco Santander
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aguas and Banco is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aguas Andinas SA and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and Aguas Andinas 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 Aguas Andinas SA 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 Chile has no effect on the direction of Aguas Andinas i.e., Aguas Andinas and Banco Santander go up and down completely randomly.
Pair Corralation between Aguas Andinas and Banco Santander
Assuming the 90 days trading horizon Aguas Andinas SA is expected to generate 1.09 times more return on investment than Banco Santander. However, Aguas Andinas is 1.09 times more volatile than Banco Santander Chile. It trades about 0.08 of its potential returns per unit of risk. Banco Santander Chile is currently generating about 0.06 per unit of risk. If you would invest 25,460 in Aguas Andinas SA on September 20, 2024 and sell it today you would earn a total of 3,540 from holding Aguas Andinas SA or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aguas Andinas SA vs. Banco Santander Chile
Performance |
| Timeline |
| Aguas Andinas SA |
| Banco Santander Chile |
Aguas Andinas and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aguas Andinas and Banco Santander
The main advantage of trading using opposite Aguas Andinas and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aguas Andinas 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.| Aguas Andinas vs. Parq Arauco | Aguas Andinas vs. Enel Generacin Chile | Aguas Andinas vs. Sociedad Matriz SAAM | Aguas Andinas vs. Empresa Nacional de |
| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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