Correlation Between Banco Santander and Enel Chile
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By analyzing existing cross correlation between Banco Santander Chile and Enel Chile SA, you can compare the effects of market volatilities on Banco Santander and Enel Chile 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 Enel Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Enel Chile.
Diversification Opportunities for Banco Santander and Enel Chile
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banco and Enel is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Enel Chile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Chile 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 Enel Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Chile SA has no effect on the direction of Banco Santander i.e., Banco Santander and Enel Chile go up and down completely randomly.
Pair Corralation between Banco Santander and Enel Chile
Assuming the 90 days trading horizon Banco Santander Chile is expected to generate 0.79 times more return on investment than Enel Chile. However, Banco Santander Chile is 1.27 times less risky than Enel Chile. It trades about 0.07 of its potential returns per unit of risk. Enel Chile SA is currently generating about 0.02 per unit of risk. If you would invest 3,617 in Banco Santander Chile on August 28, 2024 and sell it today you would earn a total of 1,063 from holding Banco Santander Chile or generate 29.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Chile vs. Enel Chile SA
Performance |
| Timeline |
| Banco Santander Chile |
| Enel Chile SA |
Banco Santander and Enel Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Enel Chile
The main advantage of trading using opposite Banco Santander and Enel Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Enel Chile 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 Enel Chile will offset losses from the drop in Enel Chile's long position.| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
| Enel Chile vs. Enel Amricas SA | Enel Chile vs. Banco de Chile | Enel Chile vs. Banco Santander Chile | Enel Chile vs. Colbun |
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.
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