Correlation Between Banco Santander and Falabella
Specify exactly 2 symbols:
By analyzing existing cross correlation between Banco Santander Chile and Falabella, you can compare the effects of market volatilities on Banco Santander and Falabella 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 Falabella. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Falabella.
Diversification Opportunities for Banco Santander and Falabella
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banco and Falabella is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Falabella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falabella 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 Falabella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falabella has no effect on the direction of Banco Santander i.e., Banco Santander and Falabella go up and down completely randomly.
Pair Corralation between Banco Santander and Falabella
Assuming the 90 days trading horizon Banco Santander is expected to generate 2.83 times less return on investment than Falabella. But when comparing it to its historical volatility, Banco Santander Chile is 1.17 times less risky than Falabella. It trades about 0.03 of its potential returns per unit of risk. Falabella is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 348,089 in Falabella on October 26, 2024 and sell it today you would earn a total of 13,921 from holding Falabella or generate 4.0% 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. Falabella
Performance |
| Timeline |
| Banco Santander Chile |
| Falabella |
Banco Santander and Falabella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Falabella
The main advantage of trading using opposite Banco Santander and Falabella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Falabella 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 Falabella will offset losses from the drop in Falabella's long position.| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
| Falabella vs. Cencosud | Falabella vs. Empresas Copec SA | Falabella vs. LATAM Airlines Group | Falabella 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |