Correlation Between Citizens Northern and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Citizens Northern 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 Citizens Northern and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Northern Corp and Banco Santander Brasil, you can compare the effects of market volatilities on Citizens Northern 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 Citizens Northern with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Northern and Banco Santander.
Diversification Opportunities for Citizens Northern and Banco Santander
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citizens and Banco is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Northern Corp and Banco Santander Brasil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Brasil and Citizens Northern 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 Citizens Northern 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 Brasil has no effect on the direction of Citizens Northern i.e., Citizens Northern and Banco Santander go up and down completely randomly.
Pair Corralation between Citizens Northern and Banco Santander
Given the investment horizon of 90 days Citizens Northern is expected to generate 2.27 times less return on investment than Banco Santander. But when comparing it to its historical volatility, Citizens Northern Corp is 1.37 times less risky than Banco Santander. It trades about 0.16 of its potential returns per unit of risk. Banco Santander Brasil is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Banco Santander Brasil on October 24, 2024 and sell it today you would earn a total of 36.00 from holding Banco Santander Brasil or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citizens Northern Corp vs. Banco Santander Brasil
Performance |
| Timeline |
| Citizens Northern Corp |
| Banco Santander Brasil |
Citizens Northern and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Northern and Banco Santander
The main advantage of trading using opposite Citizens Northern and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Northern 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.| Citizens Northern vs. Penns Woods Bancorp | Citizens Northern vs. Chemung Financial Corp | Citizens Northern vs. Enterprise Bancorp |
| Banco Santander vs. Banco De Chile | Banco Santander vs. CrossFirst Bankshares | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. CF Bankshares |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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