Correlation Between Artifex Mundi and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Artifex Mundi 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 Artifex Mundi and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artifex Mundi SA and Banco Santander SA, you can compare the effects of market volatilities on Artifex Mundi 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 Artifex Mundi with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artifex Mundi and Banco Santander.
Diversification Opportunities for Artifex Mundi and Banco Santander
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artifex and Banco is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Artifex Mundi SA 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 Artifex Mundi 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 Artifex Mundi 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 SA has no effect on the direction of Artifex Mundi i.e., Artifex Mundi and Banco Santander go up and down completely randomly.
Pair Corralation between Artifex Mundi and Banco Santander
Assuming the 90 days trading horizon Artifex Mundi SA is expected to under-perform the Banco Santander. In addition to that, Artifex Mundi is 2.64 times more volatile than Banco Santander SA. It trades about -0.29 of its total potential returns per unit of risk. Banco Santander SA is currently generating about -0.15 per unit of volatility. If you would invest 2,000 in Banco Santander SA on September 4, 2024 and sell it today you would lose (111.00) from holding Banco Santander SA or give up 5.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artifex Mundi SA vs. Banco Santander SA
Performance |
| Timeline |
| Artifex Mundi SA |
| Banco Santander SA |
Artifex Mundi and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artifex Mundi and Banco Santander
The main advantage of trading using opposite Artifex Mundi and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artifex Mundi 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.| Artifex Mundi vs. Banco Santander SA | Artifex Mundi vs. UniCredit SpA | Artifex Mundi vs. CEZ as | Artifex Mundi vs. Polski Koncern Naftowy |
| Banco Santander vs. Alior Bank SA | Banco Santander vs. Asseco South Eastern | Banco Santander vs. Vercom SA | Banco Santander vs. CFI Holding SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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