Correlation Between Banco Santander and Warimpex Finanz
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Warimpex Finanz 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 Warimpex Finanz 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 Warimpex Finanz und, you can compare the effects of market volatilities on Banco Santander and Warimpex Finanz 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 Warimpex Finanz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Warimpex Finanz.
Diversification Opportunities for Banco Santander and Warimpex Finanz
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Warimpex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Warimpex Finanz und in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warimpex Finanz und 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 Warimpex Finanz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warimpex Finanz und has no effect on the direction of Banco Santander i.e., Banco Santander and Warimpex Finanz go up and down completely randomly.
Pair Corralation between Banco Santander and Warimpex Finanz
If you would invest 74.00 in Warimpex Finanz und on August 26, 2024 and sell it today you would lose (16.00) from holding Warimpex Finanz und or give up 21.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Banco Santander SA vs. Warimpex Finanz und
Performance |
| Timeline |
| Banco Santander SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Warimpex Finanz und |
Banco Santander and Warimpex Finanz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Warimpex Finanz
The main advantage of trading using opposite Banco Santander and Warimpex Finanz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Warimpex Finanz 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 Warimpex Finanz will offset losses from the drop in Warimpex Finanz's long position.| Banco Santander vs. UNIQA Insurance Group | Banco Santander vs. SBM Offshore NV | Banco Santander vs. CNH Industrial NV | Banco Santander vs. Erste Group Bank |
| Warimpex Finanz vs. IMMOFINANZ AG | Warimpex Finanz vs. S IMMO AG | Warimpex Finanz vs. Zumtobel Group AG | Warimpex Finanz vs. UNIQA Insurance Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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