Correlation Between Banco Santander and Oak Valley
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Oak Valley 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 Oak Valley 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 Oak Valley Bancorp, you can compare the effects of market volatilities on Banco Santander and Oak Valley 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 Oak Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Oak Valley.
Diversification Opportunities for Banco Santander and Oak Valley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Oak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Mxico and Oak Valley Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Valley Bancorp 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 Oak Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Valley Bancorp has no effect on the direction of Banco Santander i.e., Banco Santander and Oak Valley go up and down completely randomly.
Pair Corralation between Banco Santander and Oak Valley
If you would invest 2,719 in Oak Valley Bancorp on August 28, 2024 and sell it today you would earn a total of 378.00 from holding Oak Valley Bancorp or generate 13.9% 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. Oak Valley Bancorp
Performance |
| Timeline |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oak Valley Bancorp |
Banco Santander and Oak Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Oak Valley
The main advantage of trading using opposite Banco Santander and Oak Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Oak Valley 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 Oak Valley will offset losses from the drop in Oak Valley'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 |
| Oak Valley vs. Fifth Third Bancorp | Oak Valley vs. Huntington Bancshares Incorporated | Oak Valley vs. MT 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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