Correlation Between Creepy Jar and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Creepy Jar 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 Creepy Jar and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creepy Jar SA and Banco Santander SA, you can compare the effects of market volatilities on Creepy Jar 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 Creepy Jar with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creepy Jar and Banco Santander.
Diversification Opportunities for Creepy Jar and Banco Santander
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creepy and Banco is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Creepy Jar SA and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA and Creepy Jar 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 Creepy Jar SA 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 SA has no effect on the direction of Creepy Jar i.e., Creepy Jar and Banco Santander go up and down completely randomly.
Pair Corralation between Creepy Jar and Banco Santander
Assuming the 90 days trading horizon Creepy Jar SA is expected to generate 59.91 times more return on investment than Banco Santander. However, Creepy Jar is 59.91 times more volatile than Banco Santander SA. It trades about 0.1 of its potential returns per unit of risk. Banco Santander SA is currently generating about 0.06 per unit of risk. If you would invest 66,665 in Creepy Jar SA on September 3, 2024 and sell it today you would lose (39,665) from holding Creepy Jar SA or give up 59.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Creepy Jar SA vs. Banco Santander SA
Performance |
| Timeline |
| Creepy Jar SA |
| Banco Santander SA |
Creepy Jar and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creepy Jar and Banco Santander
The main advantage of trading using opposite Creepy Jar and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creepy Jar 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.| Creepy Jar vs. Banco Santander SA | Creepy Jar vs. UniCredit SpA | Creepy Jar vs. CEZ as | Creepy Jar vs. Polski Koncern Naftowy |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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