Correlation Between Banco Santander and Apple
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Banco Santander and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Apple.
Diversification Opportunities for Banco Santander and Apple
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banco and Apple is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Banco Santander i.e., Banco Santander and Apple go up and down completely randomly.
Pair Corralation between Banco Santander and Apple
Assuming the 90 days trading horizon Banco Santander SA is expected to generate 0.71 times more return on investment than Apple. However, Banco Santander SA is 1.41 times less risky than Apple. It trades about 0.42 of its potential returns per unit of risk. Apple Inc is currently generating about -0.06 per unit of risk. If you would invest 439.00 in Banco Santander SA on November 3, 2024 and sell it today you would earn a total of 62.00 from holding Banco Santander SA or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander SA vs. Apple Inc
Performance |
| Timeline |
| Banco Santander SA |
| Apple Inc |
Banco Santander and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Apple
The main advantage of trading using opposite Banco Santander and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Banco Santander vs. AECOM TECHNOLOGY | Banco Santander vs. AEON METALS LTD | Banco Santander vs. Wayside Technology Group | Banco Santander vs. alstria office REIT AG |
| Apple vs. Arrow Electronics | Apple vs. Meiko Electronics Co | Apple vs. DENTSPLY SIRONA | Apple vs. KOBE STEEL LTD |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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