Correlation Between Oakworth Capital and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Oakworth Capital 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 Oakworth Capital and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakworth Capital and Banco Santander Chile, you can compare the effects of market volatilities on Oakworth Capital 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 Oakworth Capital with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakworth Capital and Banco Santander.
Diversification Opportunities for Oakworth Capital and Banco Santander
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oakworth and Banco is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Oakworth Capital 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 Oakworth Capital 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 Oakworth Capital 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 Oakworth Capital i.e., Oakworth Capital and Banco Santander go up and down completely randomly.
Pair Corralation between Oakworth Capital and Banco Santander
Given the investment horizon of 90 days Oakworth Capital is expected to generate 1.15 times more return on investment than Banco Santander. However, Oakworth Capital is 1.15 times more volatile than Banco Santander Chile. It trades about 0.05 of its potential returns per unit of risk. Banco Santander Chile is currently generating about 0.0 per unit of risk. If you would invest 2,800 in Oakworth Capital on September 1, 2024 and sell it today you would earn a total of 280.00 from holding Oakworth Capital or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Oakworth Capital vs. Banco Santander Chile
Performance |
| Timeline |
| Oakworth Capital |
| Banco Santander Chile |
Oakworth Capital and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakworth Capital and Banco Santander
The main advantage of trading using opposite Oakworth Capital and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakworth Capital 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.| Oakworth Capital vs. KeyCorp | Oakworth Capital vs. FinecoBank Banca Fineco | Oakworth Capital vs. AMMB Holdings Berhad | Oakworth Capital vs. Triumph Financial |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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