Correlation Between Banco Santander and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Credit Suisse 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 Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander SA and Credit Suisse Group, you can compare the effects of market volatilities on Banco Santander and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Credit Suisse.
Diversification Opportunities for Banco Santander and Credit Suisse
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Banco and Credit is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Credit Suisse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Group 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 SA are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Group has no effect on the direction of Banco Santander i.e., Banco Santander and Credit Suisse go up and down completely randomly.
Pair Corralation between Banco Santander and Credit Suisse
If you would invest 482.00 in Banco Santander SA on August 26, 2024 and sell it today you would lose (27.00) from holding Banco Santander SA or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.54% |
| Values | Daily Returns |
Banco Santander SA vs. Credit Suisse Group
Performance |
| Timeline |
| Banco Santander SA |
| Credit Suisse Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Banco Santander and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Credit Suisse
The main advantage of trading using opposite Banco Santander and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Banco Santander vs. ANZ Group Holdings | Banco Santander vs. Agricultural Bank | Banco Santander vs. Industrial and Commercial | Banco Santander vs. Bank of America |
| Credit Suisse vs. Barclays PLC ADR | Credit Suisse vs. HSBC Holdings PLC | Credit Suisse vs. ING Group NV | Credit Suisse vs. Citigroup |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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