Correlation Between SANTANDER and Intuitive Investments
Can any of the company-specific risk be diversified away by investing in both SANTANDER and Intuitive Investments 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 Intuitive Investments 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 Intuitive Investments Group, you can compare the effects of market volatilities on SANTANDER and Intuitive Investments 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 Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and Intuitive Investments.
Diversification Opportunities for SANTANDER and Intuitive Investments
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SANTANDER and Intuitive is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 10 and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments 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 Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of SANTANDER i.e., SANTANDER and Intuitive Investments go up and down completely randomly.
Pair Corralation between SANTANDER and Intuitive Investments
Assuming the 90 days trading horizon SANTANDER is expected to generate 3.85 times less return on investment than Intuitive Investments. But when comparing it to its historical volatility, SANTANDER UK 10 is 5.71 times less risky than Intuitive Investments. It trades about 0.06 of its potential returns per unit of risk. Intuitive Investments Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,000 in Intuitive Investments Group on September 4, 2024 and sell it today you would earn a total of 5,450 from holding Intuitive Investments Group or generate 77.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANTANDER UK 10 vs. Intuitive Investments Group
Performance |
| Timeline |
| SANTANDER UK 10 |
| Intuitive Investments |
SANTANDER and Intuitive Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANTANDER and Intuitive Investments
The main advantage of trading using opposite SANTANDER and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANTANDER position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.| SANTANDER vs. Metals Exploration Plc | SANTANDER vs. Bell Food Group | SANTANDER vs. AMG Advanced Metallurgical | SANTANDER vs. Bisichi Mining PLC |
| Intuitive Investments vs. SupplyMe Capital PLC | Intuitive Investments vs. Lloyds Banking Group | Intuitive Investments vs. Premier African Minerals | Intuitive Investments vs. SANTANDER UK 8 |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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