Correlation Between Cox ABG and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Cox ABG 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 Cox ABG and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cox ABG Group and Banco Santander Rio, you can compare the effects of market volatilities on Cox ABG 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 Cox ABG with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cox ABG and Banco Santander.
Diversification Opportunities for Cox ABG and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cox and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cox ABG Group and Banco Santander Rio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Rio and Cox ABG 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 Cox ABG Group 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 Rio has no effect on the direction of Cox ABG i.e., Cox ABG and Banco Santander go up and down completely randomly.
Pair Corralation between Cox ABG and Banco Santander
If you would invest 950.00 in Cox ABG Group on August 24, 2024 and sell it today you would earn a total of 66.00 from holding Cox ABG Group or generate 6.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cox ABG Group vs. Banco Santander Rio
Performance |
| Timeline |
| Cox ABG Group |
| Banco Santander Rio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cox ABG and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cox ABG and Banco Santander
The main advantage of trading using opposite Cox ABG and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cox ABG 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.| Cox ABG vs. All Iron Re | Cox ABG vs. Tier1 Technology SA | Cox ABG vs. Borges Agricultural Industrial | Cox ABG vs. Technomeca Aerospace SA |
| Banco Santander vs. Atresmedia Corporacin de | Banco Santander vs. International Consolidated Airlines | Banco Santander vs. Neinor Homes SLU | Banco Santander vs. Labiana Health SA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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