Correlation Between Banco Santander and Banco Hipotecario
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Banco Hipotecario 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 Banco Hipotecario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander Ro and Banco Hipotecario SA, you can compare the effects of market volatilities on Banco Santander and Banco Hipotecario 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 Banco Hipotecario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Banco Hipotecario.
Diversification Opportunities for Banco Santander and Banco Hipotecario
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 Santander Ro and Banco Hipotecario SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Hipotecario 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 Ro are associated (or correlated) with Banco Hipotecario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Hipotecario has no effect on the direction of Banco Santander i.e., Banco Santander and Banco Hipotecario go up and down completely randomly.
Pair Corralation between Banco Santander and Banco Hipotecario
If you would invest 54,600 in Banco Hipotecario SA on October 20, 2024 and sell it today you would earn a total of 900.00 from holding Banco Hipotecario SA or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Banco Santander Ro vs. Banco Hipotecario SA
Performance |
| Timeline |
| Banco Santander Ro |
| Banco Hipotecario |
Banco Santander and Banco Hipotecario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Banco Hipotecario
The main advantage of trading using opposite Banco Santander and Banco Hipotecario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Banco Hipotecario 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 Hipotecario will offset losses from the drop in Banco Hipotecario's long position.| Banco Santander vs. Banco Macro SA | Banco Santander vs. Banco Patagonia | Banco Santander vs. Grupo Supervielle SA | Banco Santander vs. Banco Hipotecario SA |
| Banco Hipotecario vs. Banco Macro SA | Banco Hipotecario vs. Banco Santander Ro | Banco Hipotecario vs. Banco Patagonia | Banco Hipotecario vs. Grupo Supervielle SA |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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