Correlation Between Banco Santander and Peoples Fin
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Peoples Fin 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 Peoples Fin 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 Peoples Fin, you can compare the effects of market volatilities on Banco Santander and Peoples Fin 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 Peoples Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Peoples Fin.
Diversification Opportunities for Banco Santander and Peoples Fin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Peoples is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Mxico and Peoples Fin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Fin 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 Peoples Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Fin has no effect on the direction of Banco Santander i.e., Banco Santander and Peoples Fin go up and down completely randomly.
Pair Corralation between Banco Santander and Peoples Fin
If you would invest 4,615 in Peoples Fin on September 1, 2024 and sell it today you would earn a total of 904.00 from holding Peoples Fin or generate 19.59% 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. Peoples Fin
Performance |
| Timeline |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Peoples Fin |
Banco Santander and Peoples Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Peoples Fin
The main advantage of trading using opposite Banco Santander and Peoples Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Peoples Fin 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 Peoples Fin will offset losses from the drop in Peoples Fin'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 |
| Peoples Fin vs. Home Federal Bancorp | Peoples Fin vs. Magyar Bancorp | Peoples Fin vs. Finward Bancorp | Peoples Fin vs. Community West Bancshares |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets |