Correlation Between Immobile and Santander Bank
Can any of the company-specific risk be diversified away by investing in both Immobile 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 Immobile and Santander Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immobile and Santander Bank Polska, you can compare the effects of market volatilities on Immobile 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 Immobile with a short position of Santander Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immobile and Santander Bank.
Diversification Opportunities for Immobile and Santander Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Immobile and Santander is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Immobile 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 Immobile 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 Immobile 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 Immobile i.e., Immobile and Santander Bank go up and down completely randomly.
Pair Corralation between Immobile and Santander Bank
Assuming the 90 days trading horizon Immobile is expected to generate 1.51 times more return on investment than Santander Bank. However, Immobile is 1.51 times more volatile than Santander Bank Polska. It trades about 0.08 of its potential returns per unit of risk. Santander Bank Polska is currently generating about -0.16 per unit of risk. If you would invest 191.00 in Immobile on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Immobile or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immobile vs. Santander Bank Polska
Performance |
| Timeline |
| Immobile |
| Santander Bank Polska |
Immobile and Santander Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immobile and Santander Bank
The main advantage of trading using opposite Immobile and Santander Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immobile 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.| Immobile vs. Carlson Investments SA | Immobile vs. Alior Bank SA | Immobile vs. Play2Chill SA | Immobile vs. Skyline Investment SA |
| Santander Bank vs. PZ Cormay SA | Santander Bank vs. MW Trade SA | Santander Bank vs. LSI Software SA | Santander Bank vs. Logintrade 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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