Correlation Between Armada Hflr and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Banco Santander SA, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Banco Santander.
Diversification Opportunities for Armada Hflr and Banco Santander
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Armada and Banco is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Banco Santander go up and down completely randomly.
Pair Corralation between Armada Hflr and Banco Santander
Considering the 90-day investment horizon Armada Hflr Pr is expected to under-perform the Banco Santander. But the stock apears to be less risky and, when comparing its historical volatility, Armada Hflr Pr is 1.34 times less risky than Banco Santander. The stock trades about -0.01 of its potential returns per unit of risk. The Banco Santander SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,702 in Banco Santander SA on December 4, 2024 and sell it today you would earn a total of 2,035 from holding Banco Santander SA or generate 119.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Armada Hflr Pr vs. Banco Santander SA
Performance |
| Timeline |
| Armada Hflr Pr |
| Banco Santander SA |
Armada Hflr and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Banco Santander
The main advantage of trading using opposite Armada Hflr and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| Banco Santander vs. Broadridge Financial Solutions, | Banco Santander vs. METISA Metalrgica Timboense | Banco Santander vs. Mitsubishi UFJ Financial | Banco Santander vs. The Hartford Financial |
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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