Correlation Between Banco Santander and Walmart
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Walmart 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 Walmart 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 Walmart, you can compare the effects of market volatilities on Banco Santander and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Walmart.
Diversification Opportunities for Banco Santander and Walmart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Walmart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Ro and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Banco Santander i.e., Banco Santander and Walmart go up and down completely randomly.
Pair Corralation between Banco Santander and Walmart
If you would invest 599,000 in Walmart on October 20, 2024 and sell it today you would earn a total of 10,000 from holding Walmart or generate 1.67% 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. Walmart
Performance |
| Timeline |
| Banco Santander Ro |
| Walmart |
Banco Santander and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Walmart
The main advantage of trading using opposite Banco Santander and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart's long position.| Banco Santander vs. Banco Bradesco DRC | Banco Santander vs. Banco Santander Brasil | Banco Santander vs. Grupo Financiero Galicia | Banco Santander vs. Central Puerto 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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