Correlation Between Banco Patagonia and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Banco Patagonia 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 Patagonia 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 Patagonia and Banco Santander Ro, you can compare the effects of market volatilities on Banco Patagonia 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 Patagonia with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Patagonia and Banco Santander.
Diversification Opportunities for Banco Patagonia and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Patagonia and Banco Santander Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Ro and Banco Patagonia 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 Patagonia 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 Ro has no effect on the direction of Banco Patagonia i.e., Banco Patagonia and Banco Santander go up and down completely randomly.
Pair Corralation between Banco Patagonia and Banco Santander
If you would invest 253,500 in Banco Patagonia on November 2, 2024 and sell it today you would earn a total of 17,000 from holding Banco Patagonia or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Banco Patagonia vs. Banco Santander Ro
Performance |
| Timeline |
| Banco Patagonia |
| Banco Santander Ro |
Banco Patagonia and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Patagonia and Banco Santander
The main advantage of trading using opposite Banco Patagonia and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Patagonia 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 Patagonia vs. Banco Macro SA | Banco Patagonia vs. Banco Santander Ro | Banco Patagonia vs. Grupo Supervielle SA | Banco Patagonia vs. Banco Hipotecario SA |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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