Correlation Between Banco Santander and Banco De
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By analyzing existing cross correlation between Banco Santander Chile and Banco de Credito, you can compare the effects of market volatilities on Banco Santander and Banco De 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 De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Banco De.
Diversification Opportunities for Banco Santander and Banco De
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banco and Banco is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Banco de Credito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Credito 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 Chile are associated (or correlated) with Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Credito has no effect on the direction of Banco Santander i.e., Banco Santander and Banco De go up and down completely randomly.
Pair Corralation between Banco Santander and Banco De
Assuming the 90 days trading horizon Banco Santander Chile is expected to generate 0.69 times more return on investment than Banco De. However, Banco Santander Chile is 1.46 times less risky than Banco De. It trades about 0.01 of its potential returns per unit of risk. Banco de Credito is currently generating about 0.01 per unit of risk. If you would invest 4,655 in Banco Santander Chile on August 28, 2024 and sell it today you would earn a total of 25.00 from holding Banco Santander Chile or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Chile vs. Banco de Credito
Performance |
| Timeline |
| Banco Santander Chile |
| Banco de Credito |
Banco Santander and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Banco De
The main advantage of trading using opposite Banco Santander and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Banco De 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 De will offset losses from the drop in Banco De's long position.| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Chile | Banco De vs. Falabella | Banco De vs. Empresas Copec 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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