Correlation Between Banco Santander and Grupo Security
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By analyzing existing cross correlation between Banco Santander Chile and Grupo Security, you can compare the effects of market volatilities on Banco Santander and Grupo Security 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 Grupo Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Grupo Security.
Diversification Opportunities for Banco Santander and Grupo Security
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banco and Grupo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Chile and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security 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 Grupo Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Security has no effect on the direction of Banco Santander i.e., Banco Santander and Grupo Security go up and down completely randomly.
Pair Corralation between Banco Santander and Grupo Security
Assuming the 90 days trading horizon Banco Santander Chile is expected to generate 1.58 times more return on investment than Grupo Security. However, Banco Santander is 1.58 times more volatile than Grupo Security. It trades about 0.09 of its potential returns per unit of risk. Grupo Security is currently generating about -0.09 per unit of risk. If you would invest 4,721 in Banco Santander Chile on September 13, 2024 and sell it today you would earn a total of 97.00 from holding Banco Santander Chile or generate 2.05% 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. Grupo Security
Performance |
| Timeline |
| Banco Santander Chile |
| Grupo Security |
Banco Santander and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Grupo Security
The main advantage of trading using opposite Banco Santander and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Grupo Security 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 Grupo Security will offset losses from the drop in Grupo Security's long position.| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
| Grupo Security vs. Banco Santander Chile | Grupo Security vs. Banco de Chile | Grupo Security vs. Falabella | Grupo Security 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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