Correlation Between Banco Macro and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Banco Macro 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 Banco Macro and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Macro SA and Banco Santander Brasil, you can compare the effects of market volatilities on Banco Macro 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 Banco Macro with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Banco Santander.
Diversification Opportunities for Banco Macro and Banco Santander
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Banco is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Banco Santander Brasil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Brasil and Banco Macro 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 Macro 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 Brasil has no effect on the direction of Banco Macro i.e., Banco Macro and Banco Santander go up and down completely randomly.
Pair Corralation between Banco Macro and Banco Santander
Considering the 90-day investment horizon Banco Macro SA is expected to generate 1.45 times more return on investment than Banco Santander. However, Banco Macro is 1.45 times more volatile than Banco Santander Brasil. It trades about 0.05 of its potential returns per unit of risk. Banco Santander Brasil is currently generating about -0.26 per unit of risk. If you would invest 7,911 in Banco Macro SA on August 27, 2024 and sell it today you would earn a total of 180.00 from holding Banco Macro SA or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Macro SA vs. Banco Santander Brasil
Performance |
| Timeline |
| Banco Macro SA |
| Banco Santander Brasil |
Banco Macro and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Banco Santander
The main advantage of trading using opposite Banco Macro and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro 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.| Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. BBVA Banco Frances | Banco Macro vs. Banco Bradesco SA | Banco Macro vs. Itau Unibanco Banco |
| Banco Santander vs. Banco De Chile | Banco Santander vs. CrossFirst Bankshares | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. CF Bankshares |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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