Correlation Between Banco Santander and Commercial International
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Commercial International 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 Commercial International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander Mxico and Commercial International Bank, you can compare the effects of market volatilities on Banco Santander and Commercial International 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 Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Commercial International.
Diversification Opportunities for Banco Santander and Commercial International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Commercial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Mxico and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Mxico are associated (or correlated) with Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Banco Santander i.e., Banco Santander and Commercial International go up and down completely randomly.
Pair Corralation between Banco Santander and Commercial International
If you would invest 150.00 in Commercial International Bank on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Commercial International Bank or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Banco Santander Mxico vs. Commercial International Bank
Performance |
| Timeline |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Commercial International |
Banco Santander and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Commercial International
The main advantage of trading using opposite Banco Santander and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International's long position.| Banco Santander vs. Permanent TSB Group | Banco Santander vs. Bank of Botetourt | Banco Santander vs. Caixabank SA ADR | Banco Santander vs. Hang Seng Bank |
| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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