Correlation Between Banco Santander and New York
Can any of the company-specific risk be diversified away by investing in both Banco Santander and New York 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 New York 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 New York Community, you can compare the effects of market volatilities on Banco Santander and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and New York.
Diversification Opportunities for Banco Santander and New York
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banco and New is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Brasil and New York Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Community 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Community has no effect on the direction of Banco Santander i.e., Banco Santander and New York go up and down completely randomly.
Pair Corralation between Banco Santander and New York
Given the investment horizon of 90 days Banco Santander Brasil is expected to under-perform the New York. But the stock apears to be less risky and, when comparing its historical volatility, Banco Santander Brasil is 1.91 times less risky than New York. The stock trades about -0.21 of its potential returns per unit of risk. The New York Community is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,028 in New York Community on August 30, 2024 and sell it today you would earn a total of 53.00 from holding New York Community or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
Banco Santander Brasil vs. New York Community
Performance |
| Timeline |
| Banco Santander Brasil |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Banco Santander and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and New York
The main advantage of trading using opposite Banco Santander and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Banco Santander vs. Banco De Chile | Banco Santander vs. CrossFirst Bankshares | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. CF Bankshares |
| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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