Correlation Between Banco Santander and AGRANA Beteiligungs
Can any of the company-specific risk be diversified away by investing in both Banco Santander and AGRANA Beteiligungs 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 AGRANA Beteiligungs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander SA and AGRANA Beteiligungs Aktiengesellschaft, you can compare the effects of market volatilities on Banco Santander and AGRANA Beteiligungs 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 AGRANA Beteiligungs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and AGRANA Beteiligungs.
Diversification Opportunities for Banco Santander and AGRANA Beteiligungs
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banco and AGRANA is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and AGRANA Beteiligungs Aktiengese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRANA Beteiligungs 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 SA are associated (or correlated) with AGRANA Beteiligungs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRANA Beteiligungs has no effect on the direction of Banco Santander i.e., Banco Santander and AGRANA Beteiligungs go up and down completely randomly.
Pair Corralation between Banco Santander and AGRANA Beteiligungs
Assuming the 90 days trading horizon Banco Santander SA is expected to generate 1.23 times more return on investment than AGRANA Beteiligungs. However, Banco Santander is 1.23 times more volatile than AGRANA Beteiligungs Aktiengesellschaft. It trades about 0.07 of its potential returns per unit of risk. AGRANA Beteiligungs Aktiengesellschaft is currently generating about -0.02 per unit of risk. If you would invest 257.00 in Banco Santander SA on August 30, 2024 and sell it today you would earn a total of 179.00 from holding Banco Santander SA or generate 69.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander SA vs. AGRANA Beteiligungs Aktiengese
Performance |
| Timeline |
| Banco Santander SA |
| AGRANA Beteiligungs |
Banco Santander and AGRANA Beteiligungs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and AGRANA Beteiligungs
The main advantage of trading using opposite Banco Santander and AGRANA Beteiligungs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, AGRANA Beteiligungs 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 AGRANA Beteiligungs will offset losses from the drop in AGRANA Beteiligungs' long position.| Banco Santander vs. RATH Aktiengesellschaft | Banco Santander vs. AT S Austria | Banco Santander vs. BAWAG Group AG | Banco Santander vs. Semperit Aktiengesellschaft Holding |
| AGRANA Beteiligungs vs. Oesterr Post AG | AGRANA Beteiligungs vs. Andritz AG | AGRANA Beteiligungs vs. EVN AG | AGRANA Beteiligungs vs. Wienerberger AG |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |