Correlation Between Intuitive Investments and SANTANDER
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and 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 Intuitive Investments and SANTANDER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Investments Group and SANTANDER UK 10, you can compare the effects of market volatilities on Intuitive Investments and 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 Intuitive Investments with a short position of SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and SANTANDER.
Diversification Opportunities for Intuitive Investments and SANTANDER
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intuitive and SANTANDER is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and SANTANDER UK 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 10 and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 10 has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and SANTANDER go up and down completely randomly.
Pair Corralation between Intuitive Investments and SANTANDER
Assuming the 90 days trading horizon Intuitive Investments Group is expected to under-perform the SANTANDER. In addition to that, Intuitive Investments is 1.44 times more volatile than SANTANDER UK 10. It trades about -0.15 of its total potential returns per unit of risk. SANTANDER UK 10 is currently generating about 0.17 per unit of volatility. If you would invest 15,675 in SANTANDER UK 10 on September 4, 2024 and sell it today you would earn a total of 195.00 from holding SANTANDER UK 10 or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Investments Group vs. SANTANDER UK 10
Performance |
| Timeline |
| Intuitive Investments |
| SANTANDER UK 10 |
Intuitive Investments and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and SANTANDER
The main advantage of trading using opposite Intuitive Investments and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, 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 SANTANDER will offset losses from the drop in SANTANDER's long position.| Intuitive Investments vs. SupplyMe Capital PLC | Intuitive Investments vs. Lloyds Banking Group | Intuitive Investments vs. Premier African Minerals | Intuitive Investments vs. SANTANDER UK 8 |
| SANTANDER vs. Metals Exploration Plc | SANTANDER vs. Bell Food Group | SANTANDER vs. AMG Advanced Metallurgical | SANTANDER vs. Bisichi Mining PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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