Correlation Between Banco Santander and Auburn National
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Auburn National at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Banco Santander and Auburn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander Brasil and Auburn National Bancorporation, you can compare the effects of market volatilities on Banco Santander and Auburn National 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 Auburn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Auburn National.
Diversification Opportunities for Banco Santander and Auburn National
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Auburn is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Brasil and Auburn National Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn National Banc 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 Brasil are associated (or correlated) with Auburn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn National Banc has no effect on the direction of Banco Santander i.e., Banco Santander and Auburn National go up and down completely randomly.
Pair Corralation between Banco Santander and Auburn National
Given the investment horizon of 90 days Banco Santander Brasil is expected to under-perform the Auburn National. But the stock apears to be less risky and, when comparing its historical volatility, Banco Santander Brasil is 1.16 times less risky than Auburn National. The stock trades about -0.02 of its potential returns per unit of risk. The Auburn National Bancorporation is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,080 in Auburn National Bancorporation on October 9, 2024 and sell it today you would earn a total of 190.00 from holding Auburn National Bancorporation or generate 9.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Banco Santander Brasil vs. Auburn National Bancorp.
Performance |
| Timeline |
| Banco Santander Brasil |
| Auburn National Banc |
Banco Santander and Auburn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Auburn National
The main advantage of trading using opposite Banco Santander and Auburn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Auburn National 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 Auburn National will offset losses from the drop in Auburn National's long position.| Banco Santander vs. Banco De Chile | Banco Santander vs. Banco Santander Chile | Banco Santander vs. Intercorp Financial Services | Banco Santander vs. Credicorp |
| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California Bancorp |
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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