Correlation Between DAX Index and Santander Bank
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By analyzing existing cross correlation between DAX Index and Santander Bank Polska, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Santander Bank.
Diversification Opportunities for DAX Index and Santander Bank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Santander is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Santander Bank go up and down completely randomly.
Pair Corralation between DAX Index and Santander Bank
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Santander Bank. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 3.16 times less risky than Santander Bank. The index trades about -0.05 of its potential returns per unit of risk. The Santander Bank Polska is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,966 in Santander Bank Polska on August 30, 2024 and sell it today you would earn a total of 194.00 from holding Santander Bank Polska or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Santander Bank Polska
Performance |
| Timeline |
DAX Index and Santander Bank Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Santander Bank Polska
Pair trading matchups for Santander Bank
Pair Trading with DAX Index and Santander Bank
The main advantage of trading using opposite DAX Index and Santander Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Gladstone Investment | DAX Index vs. REINET INVESTMENTS SCA | DAX Index vs. CarsalesCom | DAX Index vs. MARKET VECTR RETAIL |
| Santander Bank vs. COSMOSTEEL HLDGS | Santander Bank vs. Khiron Life Sciences | Santander Bank vs. Nippon Steel | Santander Bank vs. Entravision Communications |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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