Correlation Between MVB Financial and Banco Santander
Can any of the company-specific risk be diversified away by investing in both MVB Financial 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 MVB Financial and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MVB Financial Corp and Banco Santander Chile, you can compare the effects of market volatilities on MVB Financial 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 MVB Financial with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of MVB Financial and Banco Santander.
Diversification Opportunities for MVB Financial and Banco Santander
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MVB and Banco is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding MVB Financial Corp and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and MVB Financial 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 MVB Financial Corp 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 Chile has no effect on the direction of MVB Financial i.e., MVB Financial and Banco Santander go up and down completely randomly.
Pair Corralation between MVB Financial and Banco Santander
Given the investment horizon of 90 days MVB Financial Corp is expected to generate 1.66 times more return on investment than Banco Santander. However, MVB Financial is 1.66 times more volatile than Banco Santander Chile. It trades about 0.02 of its potential returns per unit of risk. Banco Santander Chile is currently generating about 0.02 per unit of risk. If you would invest 2,076 in MVB Financial Corp on September 12, 2024 and sell it today you would earn a total of 99.00 from holding MVB Financial Corp or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MVB Financial Corp vs. Banco Santander Chile
Performance |
| Timeline |
| MVB Financial Corp |
| Banco Santander Chile |
MVB Financial and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MVB Financial and Banco Santander
The main advantage of trading using opposite MVB Financial and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MVB Financial 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.| MVB Financial vs. Community West Bancshares | MVB Financial vs. First Financial Northwest | MVB Financial vs. CF Bankshares | MVB Financial vs. Home Federal Bancorp |
| Banco Santander vs. Bancolombia SA ADR | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. Credicorp | Banco Santander vs. Banco Santander Brasil |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |