Correlation Between Metals Exploration and SANTANDER
Can any of the company-specific risk be diversified away by investing in both Metals Exploration 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 Metals Exploration and SANTANDER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metals Exploration Plc and SANTANDER UK 10, you can compare the effects of market volatilities on Metals Exploration 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 Metals Exploration with a short position of SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metals Exploration and SANTANDER.
Diversification Opportunities for Metals Exploration and SANTANDER
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Metals and SANTANDER is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Metals Exploration Plc 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 Metals Exploration 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 Metals Exploration Plc 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 Metals Exploration i.e., Metals Exploration and SANTANDER go up and down completely randomly.
Pair Corralation between Metals Exploration and SANTANDER
Assuming the 90 days trading horizon Metals Exploration Plc is expected to generate 5.4 times more return on investment than SANTANDER. However, Metals Exploration is 5.4 times more volatile than SANTANDER UK 10. It trades about 0.08 of its potential returns per unit of risk. SANTANDER UK 10 is currently generating about 0.11 per unit of risk. If you would invest 270.00 in Metals Exploration Plc on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Metals Exploration Plc or generate 88.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metals Exploration Plc vs. SANTANDER UK 10
Performance |
| Timeline |
| Metals Exploration Plc |
| SANTANDER UK 10 |
Metals Exploration and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metals Exploration and SANTANDER
The main advantage of trading using opposite Metals Exploration and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metals Exploration 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.| Metals Exploration vs. Tata Steel Limited | Metals Exploration vs. Iron Mountain | Metals Exploration vs. JLEN Environmental Assets | Metals Exploration vs. Inspiration Healthcare Group |
| SANTANDER vs. Alior Bank SA | SANTANDER vs. Zegona Communications Plc | SANTANDER vs. Sparebank 1 SR | SANTANDER vs. Cembra Money 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |