Correlation Between Metrovacesa and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Metrovacesa 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 Metrovacesa and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrovacesa SA and Banco Santander Rio, you can compare the effects of market volatilities on Metrovacesa 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 Metrovacesa with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrovacesa and Banco Santander.
Diversification Opportunities for Metrovacesa and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metrovacesa and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metrovacesa SA and Banco Santander Rio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Rio and Metrovacesa 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 Metrovacesa SA 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 Rio has no effect on the direction of Metrovacesa i.e., Metrovacesa and Banco Santander go up and down completely randomly.
Pair Corralation between Metrovacesa and Banco Santander
If you would invest 628.00 in Metrovacesa SA on August 24, 2024 and sell it today you would earn a total of 248.00 from holding Metrovacesa SA or generate 39.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Metrovacesa SA vs. Banco Santander Rio
Performance |
| Timeline |
| Metrovacesa SA |
| Banco Santander Rio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Metrovacesa and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrovacesa and Banco Santander
The main advantage of trading using opposite Metrovacesa and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrovacesa 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.| Metrovacesa vs. NH Hoteles | Metrovacesa vs. Fomento de Construcciones | Metrovacesa vs. Inmobiliaria Colonial SA | Metrovacesa vs. Aedas Homes SL |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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