Correlation Between COSMOSTEEL HLDGS and Santander Bank
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and Santander Bank 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 COSMOSTEEL HLDGS and Santander Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and Santander Bank Polska, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and Santander Bank 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 COSMOSTEEL HLDGS with a short position of Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and Santander Bank.
Diversification Opportunities for COSMOSTEEL HLDGS and Santander Bank
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COSMOSTEEL and Santander is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and Santander Bank Polska in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santander Bank Polska and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS are associated (or correlated) with Santander Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santander Bank Polska has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and Santander Bank go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and Santander Bank
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 1.0 times more return on investment than Santander Bank. However, COSMOSTEEL HLDGS is 1.0 times less risky than Santander Bank. It trades about 0.06 of its potential returns per unit of risk. Santander Bank Polska is currently generating about -0.07 per unit of risk. If you would invest 6.10 in COSMOSTEEL HLDGS on September 1, 2024 and sell it today you would earn a total of 0.15 from holding COSMOSTEEL HLDGS or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
COSMOSTEEL HLDGS vs. Santander Bank Polska
Performance |
| Timeline |
| COSMOSTEEL HLDGS |
| Santander Bank Polska |
COSMOSTEEL HLDGS and Santander Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMOSTEEL HLDGS and Santander Bank
The main advantage of trading using opposite COSMOSTEEL HLDGS and Santander Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, Santander Bank 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 Santander Bank will offset losses from the drop in Santander Bank's long position.| COSMOSTEEL HLDGS vs. SIVERS SEMICONDUCTORS AB | COSMOSTEEL HLDGS vs. Darden Restaurants | COSMOSTEEL HLDGS vs. Reliance Steel Aluminum | COSMOSTEEL HLDGS vs. Q2M Managementberatung AG |
| Santander Bank vs. Lion One Metals | Santander Bank vs. NURAN WIRELESS INC | Santander Bank vs. CENTURIA OFFICE REIT | Santander Bank vs. Carsales |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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