Correlation Between Chemung Financial and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Chemung Financial 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 Chemung Financial and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemung Financial Corp and Banco Santander Mxico, you can compare the effects of market volatilities on Chemung Financial 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 Chemung Financial with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and Banco Santander.
Diversification Opportunities for Chemung Financial and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chemung and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp and Banco Santander Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Mxico and Chemung Financial 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 Chemung Financial Corp 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 Mxico has no effect on the direction of Chemung Financial i.e., Chemung Financial and Banco Santander go up and down completely randomly.
Pair Corralation between Chemung Financial and Banco Santander
If you would invest 4,778 in Chemung Financial Corp on September 1, 2024 and sell it today you would earn a total of 455.00 from holding Chemung Financial Corp or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chemung Financial Corp vs. Banco Santander Mxico
Performance |
| Timeline |
| Chemung Financial Corp |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chemung Financial and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and Banco Santander
The main advantage of trading using opposite Chemung Financial and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial 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.| Chemung Financial vs. Affinity Bancshares | Chemung Financial vs. Southern California Bancorp | Chemung Financial vs. Auburn National Bancorporation | Chemung Financial vs. BayCom Corp |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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