Correlation Between Opdenergy Holding and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Opdenergy Holding 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 Opdenergy Holding and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opdenergy Holding SA and Banco Santander Rio, you can compare the effects of market volatilities on Opdenergy Holding 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 Opdenergy Holding with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opdenergy Holding and Banco Santander.
Diversification Opportunities for Opdenergy Holding and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Opdenergy and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Opdenergy Holding 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 Opdenergy Holding 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 Opdenergy Holding 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 Opdenergy Holding i.e., Opdenergy Holding and Banco Santander go up and down completely randomly.
Pair Corralation between Opdenergy Holding and Banco Santander
If you would invest (100.00) in Banco Santander Rio on October 26, 2024 and sell it today you would earn a total of 100.00 from holding Banco Santander Rio or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opdenergy Holding SA vs. Banco Santander Rio
Performance |
| Timeline |
| Opdenergy Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Banco Santander Rio |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Opdenergy Holding and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opdenergy Holding and Banco Santander
The main advantage of trading using opposite Opdenergy Holding and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opdenergy Holding 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.| Opdenergy Holding vs. Media Investment Optimization | Opdenergy Holding vs. Bankinter | Opdenergy Holding vs. Cellnex Telecom SA | Opdenergy Holding vs. Elaia Investment Spain |
| Banco Santander vs. NH Hoteles | Banco Santander vs. Ebro Foods | Banco Santander vs. Media Investment Optimization | Banco Santander vs. Azaria Rental SOCIMI |
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 CEOs Directory module to screen CEOs from public companies around the world.
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