Correlation Between Detalion Games and Santander Bank
Can any of the company-specific risk be diversified away by investing in both Detalion Games 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 Detalion Games and Santander Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Detalion Games SA and Santander Bank Polska, you can compare the effects of market volatilities on Detalion Games 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 Detalion Games with a short position of Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Detalion Games and Santander Bank.
Diversification Opportunities for Detalion Games and Santander Bank
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Detalion and Santander is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Detalion Games SA 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 Detalion Games 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 Detalion Games SA 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 Detalion Games i.e., Detalion Games and Santander Bank go up and down completely randomly.
Pair Corralation between Detalion Games and Santander Bank
Assuming the 90 days trading horizon Detalion Games SA is expected to under-perform the Santander Bank. In addition to that, Detalion Games is 3.52 times more volatile than Santander Bank Polska. It trades about -0.31 of its total potential returns per unit of risk. Santander Bank Polska is currently generating about -0.12 per unit of volatility. If you would invest 45,980 in Santander Bank Polska on August 31, 2024 and sell it today you would lose (2,040) from holding Santander Bank Polska or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Detalion Games SA vs. Santander Bank Polska
Performance |
| Timeline |
| Detalion Games SA |
| Santander Bank Polska |
Detalion Games and Santander Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Detalion Games and Santander Bank
The main advantage of trading using opposite Detalion Games and Santander Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Detalion Games 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.| Detalion Games vs. Banco Santander SA | Detalion Games vs. UniCredit SpA | Detalion Games vs. CEZ as | Detalion Games vs. Polski Koncern Naftowy |
| Santander Bank vs. UniCredit SpA | Santander Bank vs. Bank Handlowy w | Santander Bank vs. BNP Paribas Bank | Santander Bank vs. Bank Millennium 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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