Correlation Between Banco Santander and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both Banco Santander and STAG Industrial, 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 STAG Industrial, 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 STAG Industrial,, you can compare the effects of market volatilities on Banco Santander and STAG Industrial, 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 STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and STAG Industrial,.
Diversification Opportunities for Banco Santander and STAG Industrial,
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banco and STAG is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, 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 STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of Banco Santander i.e., Banco Santander and STAG Industrial, go up and down completely randomly.
Pair Corralation between Banco Santander and STAG Industrial,
Assuming the 90 days trading horizon Banco Santander Chile is expected to generate 0.4 times more return on investment than STAG Industrial,. However, Banco Santander Chile is 2.47 times less risky than STAG Industrial,. It trades about -0.26 of its potential returns per unit of risk. STAG Industrial, is currently generating about -0.16 per unit of risk. If you would invest 5,868 in Banco Santander Chile on October 11, 2024 and sell it today you would lose (269.00) from holding Banco Santander Chile or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Chile vs. STAG Industrial,
Performance |
| Timeline |
| Banco Santander Chile |
| STAG Industrial, |
Banco Santander and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and STAG Industrial,
The main advantage of trading using opposite Banco Santander and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| Banco Santander vs. Air Products and | Banco Santander vs. Molson Coors Beverage | Banco Santander vs. Telecomunicaes Brasileiras SA | Banco Santander vs. Ryanair Holdings plc |
| STAG Industrial, vs. Taiwan Semiconductor Manufacturing | STAG Industrial, vs. Apple Inc | STAG Industrial, vs. Alibaba Group Holding | STAG Industrial, vs. Banco Santander Chile |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |