Correlation Between Oak Valley and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Oak Valley 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 Oak Valley and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oak Valley Bancorp and Banco Santander Mxico, you can compare the effects of market volatilities on Oak Valley 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 Oak Valley with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Valley and Banco Santander.
Diversification Opportunities for Oak Valley and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oak and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oak Valley Bancorp and Banco Santander Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Mxico and Oak Valley 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 Oak Valley Bancorp 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 Mxico has no effect on the direction of Oak Valley i.e., Oak Valley and Banco Santander go up and down completely randomly.
Pair Corralation between Oak Valley and Banco Santander
If you would invest 2,700 in Oak Valley Bancorp on September 1, 2024 and sell it today you would earn a total of 416.00 from holding Oak Valley Bancorp or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Oak Valley Bancorp vs. Banco Santander Mxico
Performance |
| Timeline |
| Oak Valley Bancorp |
| Banco Santander Mxico |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oak Valley and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Valley and Banco Santander
The main advantage of trading using opposite Oak Valley and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Valley 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.| Oak Valley vs. Affinity Bancshares | Oak Valley vs. Southern California Bancorp | Oak Valley vs. Auburn National Bancorporation | Oak Valley vs. BayCom Corp |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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