Correlation Between Banco Santander and Cencosud
Specify exactly 2 symbols:
By analyzing existing cross correlation between Banco Santander Chile and Cencosud, you can compare the effects of market volatilities on Banco Santander and Cencosud 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 Cencosud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Cencosud.
Diversification Opportunities for Banco Santander and Cencosud
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banco and Cencosud is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Cencosud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencosud 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 Cencosud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencosud has no effect on the direction of Banco Santander i.e., Banco Santander and Cencosud go up and down completely randomly.
Pair Corralation between Banco Santander and Cencosud
Assuming the 90 days trading horizon Banco Santander is expected to generate 1.53 times less return on investment than Cencosud. But when comparing it to its historical volatility, Banco Santander Chile is 1.38 times less risky than Cencosud. It trades about 0.4 of its potential returns per unit of risk. Cencosud is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 222,200 in Cencosud on November 5, 2024 and sell it today you would earn a total of 27,800 from holding Cencosud or generate 12.51% 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. Cencosud
Performance |
| Timeline |
| Banco Santander Chile |
| Cencosud |
Banco Santander and Cencosud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Cencosud
The main advantage of trading using opposite Banco Santander and Cencosud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Cencosud 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 Cencosud will offset losses from the drop in Cencosud's long position.| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
| Cencosud vs. Falabella | Cencosud vs. Empresas Copec SA | Cencosud vs. Sociedad Qumica y | Cencosud vs. Banco Santander Chile |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |