Correlation Between Santander Bank and Komercní Banka
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Komercní Banka 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 Santander Bank and Komercní Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santander Bank Polska and Komercn banka as, you can compare the effects of market volatilities on Santander Bank and Komercní Banka 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 Santander Bank with a short position of Komercní Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Komercní Banka.
Diversification Opportunities for Santander Bank and Komercní Banka
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Santander and Komercní is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and Santander Bank 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 Santander Bank Polska are associated (or correlated) with Komercní Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of Santander Bank i.e., Santander Bank and Komercní Banka go up and down completely randomly.
Pair Corralation between Santander Bank and Komercní Banka
Assuming the 90 days horizon Santander Bank Polska is expected to generate 2.71 times more return on investment than Komercní Banka. However, Santander Bank is 2.71 times more volatile than Komercn banka as. It trades about 0.08 of its potential returns per unit of risk. Komercn banka as is currently generating about 0.02 per unit of risk. If you would invest 4,567 in Santander Bank Polska on August 26, 2024 and sell it today you would earn a total of 5,683 from holding Santander Bank Polska or generate 124.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Santander Bank Polska vs. Komercn banka as
Performance |
| Timeline |
| Santander Bank Polska |
| Komercn banka as |
Santander Bank and Komercní Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Komercní Banka
The main advantage of trading using opposite Santander Bank and Komercní Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Komercní Banka 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 Komercní Banka will offset losses from the drop in Komercní Banka's long position.| Santander Bank vs. Superior Plus Corp | Santander Bank vs. NMI Holdings | Santander Bank vs. Origin Agritech | Santander Bank vs. SIVERS SEMICONDUCTORS AB |
| Komercní Banka vs. Unity Software | Komercní Banka vs. Xinhua Winshare Publishing | Komercní Banka vs. Zijin Mining Group | Komercní Banka vs. Coeur Mining |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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