Correlation Between Banco Santander and EAST SIDE
Can any of the company-specific risk be diversified away by investing in both Banco Santander and EAST SIDE 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 EAST SIDE 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 EAST SIDE GAMES, you can compare the effects of market volatilities on Banco Santander and EAST SIDE 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 EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and EAST SIDE.
Diversification Opportunities for Banco Santander and EAST SIDE
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and EAST is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and EAST SIDE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST SIDE GAMES 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 EAST SIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST SIDE GAMES has no effect on the direction of Banco Santander i.e., Banco Santander and EAST SIDE go up and down completely randomly.
Pair Corralation between Banco Santander and EAST SIDE
Assuming the 90 days trading horizon Banco Santander is expected to generate 2.32 times less return on investment than EAST SIDE. But when comparing it to its historical volatility, Banco Santander SA is 3.76 times less risky than EAST SIDE. It trades about 0.07 of its potential returns per unit of risk. EAST SIDE GAMES is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 29.00 in EAST SIDE GAMES on September 15, 2024 and sell it today you would earn a total of 7.00 from holding EAST SIDE GAMES or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Banco Santander SA vs. EAST SIDE GAMES
Performance |
| Timeline |
| Banco Santander SA |
| EAST SIDE GAMES |
Banco Santander and EAST SIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and EAST SIDE
The main advantage of trading using opposite Banco Santander and EAST SIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, EAST SIDE 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 EAST SIDE will offset losses from the drop in EAST SIDE's long position.| Banco Santander vs. EAST SIDE GAMES | Banco Santander vs. Ameriprise Financial | Banco Santander vs. VIRG NATL BANKSH | Banco Santander vs. GameStop Corp |
| EAST SIDE vs. NEXON Co | EAST SIDE vs. Take Two Interactive Software | EAST SIDE vs. Superior Plus Corp | EAST SIDE vs. SIVERS SEMICONDUCTORS AB |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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