Correlation Between SANTANDER and Everyman Media
Can any of the company-specific risk be diversified away by investing in both SANTANDER and Everyman Media 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 SANTANDER and Everyman Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANTANDER UK 10 and Everyman Media Group, you can compare the effects of market volatilities on SANTANDER and Everyman Media 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 SANTANDER with a short position of Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and Everyman Media.
Diversification Opportunities for SANTANDER and Everyman Media
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SANTANDER and Everyman is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 10 and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group and SANTANDER 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 SANTANDER UK 10 are associated (or correlated) with Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of SANTANDER i.e., SANTANDER and Everyman Media go up and down completely randomly.
Pair Corralation between SANTANDER and Everyman Media
Assuming the 90 days trading horizon SANTANDER UK 10 is expected to generate 0.38 times more return on investment than Everyman Media. However, SANTANDER UK 10 is 2.63 times less risky than Everyman Media. It trades about -0.04 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.03 per unit of risk. If you would invest 15,725 in SANTANDER UK 10 on September 14, 2024 and sell it today you would lose (60.00) from holding SANTANDER UK 10 or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANTANDER UK 10 vs. Everyman Media Group
Performance |
| Timeline |
| SANTANDER UK 10 |
| Everyman Media Group |
SANTANDER and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANTANDER and Everyman Media
The main advantage of trading using opposite SANTANDER and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANTANDER position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| SANTANDER vs. Walmart | SANTANDER vs. BYD Co | SANTANDER vs. Volkswagen AG Non Vtg | SANTANDER vs. Compass Group PLC |
| Everyman Media vs. Catalyst Media Group | Everyman Media vs. CATLIN GROUP | Everyman Media vs. RTW Venture Fund | Everyman Media vs. SANTANDER UK 10 |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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