Correlation Between OceanFirst Financial and Banco Santander
Can any of the company-specific risk be diversified away by investing in both OceanFirst 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 OceanFirst 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 OceanFirst Financial Corp and Banco Santander Chile, you can compare the effects of market volatilities on OceanFirst 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 OceanFirst Financial with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of OceanFirst Financial and Banco Santander.
Diversification Opportunities for OceanFirst Financial and Banco Santander
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OceanFirst and Banco is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding OceanFirst 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 OceanFirst 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 OceanFirst 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 OceanFirst Financial i.e., OceanFirst Financial and Banco Santander go up and down completely randomly.
Pair Corralation between OceanFirst Financial and Banco Santander
Assuming the 90 days horizon OceanFirst Financial Corp is expected to generate 0.31 times more return on investment than Banco Santander. However, OceanFirst Financial Corp is 3.23 times less risky than Banco Santander. It trades about 0.09 of its potential returns per unit of risk. Banco Santander Chile is currently generating about -0.03 per unit of risk. If you would invest 2,478 in OceanFirst Financial Corp on October 25, 2024 and sell it today you would earn a total of 52.00 from holding OceanFirst Financial Corp or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OceanFirst Financial Corp vs. Banco Santander Chile
Performance |
| Timeline |
| OceanFirst Financial Corp |
| Banco Santander Chile |
OceanFirst Financial and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OceanFirst Financial and Banco Santander
The main advantage of trading using opposite OceanFirst Financial and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OceanFirst 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.| OceanFirst Financial vs. Pinnacle Financial Partners | OceanFirst Financial vs. Dime Community Bancshares | OceanFirst Financial vs. Heartland Financial USA | OceanFirst Financial vs. Wintrust Financial Corp |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |