Correlation Between Atlantis and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Atlantis 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 Atlantis and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantis SA and Banco Santander SA, you can compare the effects of market volatilities on Atlantis 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 Atlantis with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantis and Banco Santander.
Diversification Opportunities for Atlantis and Banco Santander
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atlantis and Banco is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Atlantis 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 Atlantis 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 Atlantis 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 Atlantis i.e., Atlantis and Banco Santander go up and down completely randomly.
Pair Corralation between Atlantis and Banco Santander
Assuming the 90 days trading horizon Atlantis SA is expected to under-perform the Banco Santander. In addition to that, Atlantis is 3.64 times more volatile than Banco Santander SA. It trades about -0.03 of its total potential returns per unit of risk. Banco Santander SA is currently generating about 0.06 per unit of volatility. If you would invest 1,434 in Banco Santander SA on October 24, 2024 and sell it today you would earn a total of 617.00 from holding Banco Santander SA or generate 43.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Atlantis SA vs. Banco Santander SA
Performance |
| Timeline |
| Atlantis SA |
| Banco Santander SA |
Atlantis and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantis and Banco Santander
The main advantage of trading using opposite Atlantis and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantis 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.| Atlantis vs. Banco Santander SA | Atlantis vs. UniCredit SpA | Atlantis vs. CEZ as | Atlantis vs. Polski Koncern Naftowy |
| Banco Santander vs. Cloud Technologies SA | Banco Santander vs. CI Games SA | Banco Santander vs. Saule Technologies SA | Banco Santander vs. Movie Games 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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