Correlation Between Engie Energia and Banco Santander
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By analyzing existing cross correlation between Engie Energia Chile and Banco Santander Chile, you can compare the effects of market volatilities on Engie Energia 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 Engie Energia with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engie Energia and Banco Santander.
Diversification Opportunities for Engie Energia and Banco Santander
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Engie and Banco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Engie Energia Chile and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and Engie Energia 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 Engie Energia Chile 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 Chile has no effect on the direction of Engie Energia i.e., Engie Energia and Banco Santander go up and down completely randomly.
Pair Corralation between Engie Energia and Banco Santander
Assuming the 90 days trading horizon Engie Energia is expected to generate 3.66 times less return on investment than Banco Santander. In addition to that, Engie Energia is 1.17 times more volatile than Banco Santander Chile. It trades about 0.02 of its total potential returns per unit of risk. Banco Santander Chile is currently generating about 0.07 per unit of volatility. If you would invest 4,708 in Banco Santander Chile on September 20, 2024 and sell it today you would earn a total of 61.00 from holding Banco Santander Chile or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Engie Energia Chile vs. Banco Santander Chile
Performance |
| Timeline |
| Engie Energia Chile |
| Banco Santander Chile |
Engie Energia and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engie Energia and Banco Santander
The main advantage of trading using opposite Engie Energia and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engie Energia 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.| Engie Energia vs. Colbun | Engie Energia vs. Enel Chile SA | Engie Energia vs. CAP SA | Engie Energia vs. Enel Amricas SA |
| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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