Correlation Between Banco Santander and Clover Health
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Clover Health 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 Clover Health 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 Clover Health Investments,, you can compare the effects of market volatilities on Banco Santander and Clover Health 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 Clover Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Clover Health.
Diversification Opportunities for Banco Santander and Clover Health
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banco and Clover is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Clover Health Investments, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Health Invest 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 Clover Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Health Invest has no effect on the direction of Banco Santander i.e., Banco Santander and Clover Health go up and down completely randomly.
Pair Corralation between Banco Santander and Clover Health
Assuming the 90 days trading horizon Banco Santander is expected to generate 216.42 times less return on investment than Clover Health. But when comparing it to its historical volatility, Banco Santander Chile is 3.02 times less risky than Clover Health. It trades about 0.0 of its potential returns per unit of risk. Clover Health Investments, is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 2,100 in Clover Health Investments, on October 25, 2024 and sell it today you would earn a total of 382.00 from holding Clover Health Investments, or generate 18.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Chile vs. Clover Health Investments,
Performance |
| Timeline |
| Banco Santander Chile |
| Clover Health Invest |
Banco Santander and Clover Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Clover Health
The main advantage of trading using opposite Banco Santander and Clover Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Clover Health 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 Clover Health will offset losses from the drop in Clover Health's long position.| Banco Santander vs. Teladoc Health | Banco Santander vs. Ameriprise Financial | Banco Santander vs. Credit Acceptance | Banco Santander vs. The Hartford Financial |
| Clover Health vs. Tyson Foods | Clover Health vs. Credit Acceptance | Clover Health vs. Bank of America | Clover Health vs. SVB Financial Group |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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