Correlation Between Ebro Foods and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Ebro Foods 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 Ebro Foods and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebro Foods and Banco Santander Rio, you can compare the effects of market volatilities on Ebro Foods 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 Ebro Foods with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and Banco Santander.
Diversification Opportunities for Ebro Foods and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ebro and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods 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 Ebro Foods 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 Ebro Foods 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 Ebro Foods i.e., Ebro Foods and Banco Santander go up and down completely randomly.
Pair Corralation between Ebro Foods and Banco Santander
If you would invest 1,584 in Ebro Foods on August 28, 2024 and sell it today you would earn a total of 14.00 from holding Ebro Foods or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ebro Foods vs. Banco Santander Rio
Performance |
| Timeline |
| Ebro Foods |
| Banco Santander Rio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ebro Foods and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebro Foods and Banco Santander
The main advantage of trading using opposite Ebro Foods and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods 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.| Ebro Foods vs. Viscofan | Ebro Foods vs. Enags SA | Ebro Foods vs. Mapfre | Ebro Foods vs. ACS Actividades de |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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