Correlation Between CrossFirst Bankshares and Banco Santander
Can any of the company-specific risk be diversified away by investing in both CrossFirst Bankshares and Banco Santander 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 CrossFirst Bankshares and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrossFirst Bankshares and Banco Santander Chile, you can compare the effects of market volatilities on CrossFirst Bankshares and Banco Santander 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 CrossFirst Bankshares with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrossFirst Bankshares and Banco Santander.
Diversification Opportunities for CrossFirst Bankshares and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CrossFirst and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and CrossFirst Bankshares 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 CrossFirst Bankshares are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Chile has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and Banco Santander go up and down completely randomly.
Pair Corralation between CrossFirst Bankshares and Banco Santander
Considering the 90-day investment horizon CrossFirst Bankshares is expected to generate 2.41 times more return on investment than Banco Santander. However, CrossFirst Bankshares is 2.41 times more volatile than Banco Santander Chile. It trades about 0.14 of its potential returns per unit of risk. Banco Santander Chile is currently generating about -0.27 per unit of risk. If you would invest 1,641 in CrossFirst Bankshares on August 27, 2024 and sell it today you would earn a total of 154.00 from holding CrossFirst Bankshares or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CrossFirst Bankshares vs. Banco Santander Chile
Performance |
| Timeline |
| CrossFirst Bankshares |
| Banco Santander Chile |
CrossFirst Bankshares and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrossFirst Bankshares and Banco Santander
The main advantage of trading using opposite CrossFirst Bankshares and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrossFirst Bankshares position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| CrossFirst Bankshares vs. Home Bancorp | CrossFirst Bankshares vs. Great Southern Bancorp | CrossFirst Bankshares vs. Finward Bancorp | CrossFirst Bankshares vs. Community West Bancshares |
| Banco Santander vs. Bancolombia SA ADR | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. Credicorp | Banco Santander vs. Banco Santander Brasil |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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