Correlation Between SVB Financial and Banco Santander
Can any of the company-specific risk be diversified away by investing in both SVB 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 SVB 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 SVB Financial Group and Banco Santander SA, you can compare the effects of market volatilities on SVB 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 SVB Financial with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Banco Santander.
Diversification Opportunities for SVB Financial and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA and SVB 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 SVB Financial Group 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 SA has no effect on the direction of SVB Financial i.e., SVB Financial and Banco Santander go up and down completely randomly.
Pair Corralation between SVB Financial and Banco Santander
If you would invest 2,754 in Banco Santander SA on November 3, 2024 and sell it today you would earn a total of 207.00 from holding Banco Santander SA or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVB Financial Group vs. Banco Santander SA
Performance |
| Timeline |
| SVB Financial Group |
| Banco Santander SA |
SVB Financial and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Banco Santander
The main advantage of trading using opposite SVB Financial and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB 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.| SVB Financial vs. Check Point Software | SVB Financial vs. Charter Communications | SVB Financial vs. Beyond Meat | SVB Financial vs. Chunghwa Telecom Co, |
| Banco Santander vs. Unity Software | Banco Santander vs. Cognizant Technology Solutions | Banco Santander vs. BIONTECH SE DRN | Banco Santander vs. Raytheon Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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