Correlation Between Banco Santander and Grupo Ezentis
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Grupo Ezentis 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 Banco Santander and Grupo Ezentis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander and Grupo Ezentis SA, you can compare the effects of market volatilities on Banco Santander and Grupo Ezentis 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 Banco Santander with a short position of Grupo Ezentis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Grupo Ezentis.
Diversification Opportunities for Banco Santander and Grupo Ezentis
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Grupo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander and Grupo Ezentis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Ezentis SA and Banco 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 Banco Santander are associated (or correlated) with Grupo Ezentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Ezentis SA has no effect on the direction of Banco Santander i.e., Banco Santander and Grupo Ezentis go up and down completely randomly.
Pair Corralation between Banco Santander and Grupo Ezentis
Assuming the 90 days trading horizon Banco Santander is expected to generate 0.42 times more return on investment than Grupo Ezentis. However, Banco Santander is 2.35 times less risky than Grupo Ezentis. It trades about 0.0 of its potential returns per unit of risk. Grupo Ezentis SA is currently generating about -0.15 per unit of risk. If you would invest 439.00 in Banco Santander on August 30, 2024 and sell it today you would lose (2.00) from holding Banco Santander or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander vs. Grupo Ezentis SA
Performance |
| Timeline |
| Banco Santander |
| Grupo Ezentis SA |
Banco Santander and Grupo Ezentis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Grupo Ezentis
The main advantage of trading using opposite Banco Santander and Grupo Ezentis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Grupo Ezentis 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 Grupo Ezentis will offset losses from the drop in Grupo Ezentis' long position.| Banco Santander vs. Repsol | Banco Santander vs. Iberdrola SA | Banco Santander vs. Banco de Sabadell | Banco Santander vs. Caixabank SA |
| Grupo Ezentis vs. Compania Espanola de | Grupo Ezentis vs. Metrovacesa SA | Grupo Ezentis vs. Endurance Motive SA | Grupo Ezentis vs. Elecnor SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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