Correlation Between Hang Seng and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Hang Seng 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 Hang Seng and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hang Seng Bank and Banco Santander Mxico, you can compare the effects of market volatilities on Hang Seng 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 Hang Seng with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Banco Santander.
Diversification Opportunities for Hang Seng and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hang and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng Bank and Banco Santander Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Mxico and Hang Seng 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 Hang Seng Bank 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 Mxico has no effect on the direction of Hang Seng i.e., Hang Seng and Banco Santander go up and down completely randomly.
Pair Corralation between Hang Seng and Banco Santander
If you would invest (100.00) in Banco Santander Mxico on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Banco Santander Mxico or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hang Seng Bank vs. Banco Santander Mxico
Performance |
| Timeline |
| Hang Seng Bank |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hang Seng and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Seng and Banco Santander
The main advantage of trading using opposite Hang Seng and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Seng 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.| Hang Seng vs. Caixabank SA ADR | Hang Seng vs. Commercial International Bank | Hang Seng vs. PT Bank Rakyat | Hang Seng vs. Riverview Bancorp |
| Banco Santander vs. Permanent TSB Group | Banco Santander vs. Bank of Botetourt | Banco Santander vs. Caixabank SA ADR | Banco Santander vs. Hang Seng Bank |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |