Correlation Between Banco Santander and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Schweizerische Nationalbank 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 Schweizerische Nationalbank 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 Schweizerische Nationalbank, you can compare the effects of market volatilities on Banco Santander and Schweizerische Nationalbank 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 Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Schweizerische Nationalbank.
Diversification Opportunities for Banco Santander and Schweizerische Nationalbank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banco and Schweizerische is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Brasil and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Banco Santander i.e., Banco Santander and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between Banco Santander and Schweizerische Nationalbank
If you would invest 379,644 in Schweizerische Nationalbank on December 9, 2024 and sell it today you would earn a total of 0.00 from holding Schweizerische Nationalbank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander Brasil vs. Schweizerische Nationalbank
Performance |
| Timeline |
| Banco Santander Brasil |
| Schweizerische Nationalbank |
Banco Santander and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Schweizerische Nationalbank
The main advantage of trading using opposite Banco Santander and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank's long position.| Banco Santander vs. Banco De Chile | ||
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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