Correlation Between Banco Santander and MOBILE FACTORY
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By analyzing existing cross correlation between Banco Santander SA and MOBILE FACTORY INC, you can compare the effects of market volatilities on Banco Santander and MOBILE FACTORY 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 MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and MOBILE FACTORY.
Diversification Opportunities for Banco Santander and MOBILE FACTORY
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banco and MOBILE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY 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 MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of Banco Santander i.e., Banco Santander and MOBILE FACTORY go up and down completely randomly.
Pair Corralation between Banco Santander and MOBILE FACTORY
Assuming the 90 days trading horizon Banco Santander SA is expected to generate 0.59 times more return on investment than MOBILE FACTORY. However, Banco Santander SA is 1.71 times less risky than MOBILE FACTORY. It trades about 0.41 of its potential returns per unit of risk. MOBILE FACTORY INC is currently generating about 0.13 per unit of risk. If you would invest 454.00 in Banco Santander SA on November 5, 2024 and sell it today you would earn a total of 43.00 from holding Banco Santander SA or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Banco Santander SA vs. MOBILE FACTORY INC
Performance |
| Timeline |
| Banco Santander SA |
| MOBILE FACTORY INC |
Banco Santander and MOBILE FACTORY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and MOBILE FACTORY
The main advantage of trading using opposite Banco Santander and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.| Banco Santander vs. BORR DRILLING NEW | Banco Santander vs. FAST RETAIL ADR | Banco Santander vs. MEDICAL FACILITIES NEW | Banco Santander vs. AWILCO DRILLING PLC |
| MOBILE FACTORY vs. Hyatt Hotels | MOBILE FACTORY vs. COVIVIO HOTELS INH | MOBILE FACTORY vs. QINGCI GAMES INC | MOBILE FACTORY vs. InterContinental Hotels Group |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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