Correlation Between Banco Santander and Empresas Copec
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By analyzing existing cross correlation between Banco Santander Chile and Empresas Copec SA, you can compare the effects of market volatilities on Banco Santander and Empresas Copec 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 Empresas Copec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Empresas Copec.
Diversification Opportunities for Banco Santander and Empresas Copec
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banco and Empresas is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Empresas Copec SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresas Copec SA 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 Empresas Copec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresas Copec SA has no effect on the direction of Banco Santander i.e., Banco Santander and Empresas Copec go up and down completely randomly.
Pair Corralation between Banco Santander and Empresas Copec
Assuming the 90 days trading horizon Banco Santander Chile is expected to generate 0.58 times more return on investment than Empresas Copec. However, Banco Santander Chile is 1.73 times less risky than Empresas Copec. It trades about 0.4 of its potential returns per unit of risk. Empresas Copec SA is currently generating about 0.19 per unit of risk. If you would invest 4,693 in Banco Santander Chile on November 5, 2024 and sell it today you would earn a total of 377.00 from holding Banco Santander Chile or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Chile vs. Empresas Copec SA
Performance |
| Timeline |
| Banco Santander Chile |
| Empresas Copec SA |
Banco Santander and Empresas Copec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Empresas Copec
The main advantage of trading using opposite Banco Santander and Empresas Copec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Empresas Copec 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 Empresas Copec will offset losses from the drop in Empresas Copec's long position.| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
| Empresas Copec vs. Falabella | Empresas Copec vs. Cencosud | Empresas Copec vs. Empresas CMPC | Empresas Copec vs. Sociedad Qumica y |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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