Correlation Between Banco Santander and American Express
Can any of the company-specific risk be diversified away by investing in both Banco Santander and American Express 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 American Express 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 American Express Co, you can compare the effects of market volatilities on Banco Santander and American Express 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 American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and American Express.
Diversification Opportunities for Banco Santander and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Ro and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Banco Santander i.e., Banco Santander and American Express go up and down completely randomly.
Pair Corralation between Banco Santander and American Express
If you would invest 2,210,000 in American Express Co on November 2, 2024 and sell it today you would earn a total of 315,000 from holding American Express Co or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Banco Santander Ro vs. American Express Co
Performance |
| Timeline |
| Banco Santander Ro |
| American Express |
Banco Santander and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and American Express
The main advantage of trading using opposite Banco Santander and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| Banco Santander vs. United States Steel | Banco Santander vs. Compania de Transporte | Banco Santander vs. Harmony Gold Mining | Banco Santander vs. Agrometal SAI |
| American Express vs. International Business Machines | American Express vs. Transportadora de Gas | American Express vs. Agrometal SAI | American Express vs. Grimoldi 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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