Correlation Between Banco Santander and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Banco Santander and ALBIS LEASING 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 ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander SA and ALBIS LEASING AG, you can compare the effects of market volatilities on Banco Santander and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and ALBIS LEASING.
Diversification Opportunities for Banco Santander and ALBIS LEASING
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banco and ALBIS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 SA are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Banco Santander i.e., Banco Santander and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Banco Santander and ALBIS LEASING
Assuming the 90 days trading horizon Banco Santander SA is expected to generate 1.98 times more return on investment than ALBIS LEASING. However, Banco Santander is 1.98 times more volatile than ALBIS LEASING AG. It trades about 0.07 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.06 per unit of risk. If you would invest 255.00 in Banco Santander SA on September 3, 2024 and sell it today you would earn a total of 183.00 from holding Banco Santander SA or generate 71.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander SA vs. ALBIS LEASING AG
Performance |
| Timeline |
| Banco Santander SA |
| ALBIS LEASING AG |
Banco Santander and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and ALBIS LEASING
The main advantage of trading using opposite Banco Santander and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Banco Santander vs. TOTAL GABON | Banco Santander vs. Walgreens Boots Alliance | Banco Santander vs. Peak Resources Limited |
| ALBIS LEASING vs. TOTAL GABON | ALBIS LEASING vs. Walgreens Boots Alliance | ALBIS LEASING vs. Peak Resources Limited |
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 Stocks Directory module to find actively traded stocks across global markets.
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