Correlation Between Banco De and Banco Santander
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By analyzing existing cross correlation between Banco de Chile and Banco Santander Chile, you can compare the effects of market volatilities on Banco De 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 Banco De with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and Banco Santander.
Diversification Opportunities for Banco De and Banco Santander
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banco and Banco is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Chile 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 Banco De 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 de Chile 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 Banco De i.e., Banco De and Banco Santander go up and down completely randomly.
Pair Corralation between Banco De and Banco Santander
Assuming the 90 days trading horizon Banco de Chile is expected to generate 0.94 times more return on investment than Banco Santander. However, Banco de Chile is 1.06 times less risky than Banco Santander. It trades about 0.09 of its potential returns per unit of risk. Banco Santander Chile is currently generating about 0.08 per unit of risk. If you would invest 6,949 in Banco de Chile on August 28, 2024 and sell it today you would earn a total of 4,251 from holding Banco de Chile or generate 61.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Banco de Chile vs. Banco Santander Chile
Performance |
| Timeline |
| Banco de Chile |
| Banco Santander Chile |
Banco De and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and Banco Santander
The main advantage of trading using opposite Banco De and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De 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.| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Credito | Banco De vs. Falabella | Banco De vs. Cencosud |
| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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