Correlation Between Banco Santander and Burlington Stores,
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Burlington Stores, 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 Banco Santander and Burlington Stores, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander Chile and Burlington Stores,, you can compare the effects of market volatilities on Banco Santander and Burlington Stores, 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 Banco Santander with a short position of Burlington Stores,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Burlington Stores,.
Diversification Opportunities for Banco Santander and Burlington Stores,
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banco and Burlington is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, and Banco Santander 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 Banco Santander Chile are associated (or correlated) with Burlington Stores,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores, has no effect on the direction of Banco Santander i.e., Banco Santander and Burlington Stores, go up and down completely randomly.
Pair Corralation between Banco Santander and Burlington Stores,
Assuming the 90 days trading horizon Banco Santander is expected to generate 1.52 times less return on investment than Burlington Stores,. But when comparing it to its historical volatility, Banco Santander Chile is 2.39 times less risky than Burlington Stores,. It trades about 0.06 of its potential returns per unit of risk. Burlington Stores, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,000 in Burlington Stores, on October 28, 2024 and sell it today you would earn a total of 1,754 from holding Burlington Stores, or generate 43.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.12% |
| Values | Daily Returns |
Banco Santander Chile vs. Burlington Stores,
Performance |
| Timeline |
| Banco Santander Chile |
| Burlington Stores, |
Banco Santander and Burlington Stores, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Burlington Stores,
The main advantage of trading using opposite Banco Santander and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Burlington Stores, 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 Burlington Stores, will offset losses from the drop in Burlington Stores,'s long position.| Banco Santander vs. HCA Healthcare, | Banco Santander vs. Cardinal Health, | Banco Santander vs. Global X Funds | Banco Santander vs. CVS Health |
| Burlington Stores, vs. Arrow Electronics, | Burlington Stores, vs. Teladoc Health | Burlington Stores, vs. United States Steel | Burlington Stores, vs. United Rentals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |