Correlation Between Banco Santander and Artifex Mundi
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Artifex Mundi 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 Artifex Mundi 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 Artifex Mundi SA, you can compare the effects of market volatilities on Banco Santander and Artifex Mundi 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 Artifex Mundi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Artifex Mundi.
Diversification Opportunities for Banco Santander and Artifex Mundi
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banco and Artifex is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Artifex Mundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artifex Mundi 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 SA are associated (or correlated) with Artifex Mundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artifex Mundi SA has no effect on the direction of Banco Santander i.e., Banco Santander and Artifex Mundi go up and down completely randomly.
Pair Corralation between Banco Santander and Artifex Mundi
Assuming the 90 days trading horizon Banco Santander is expected to generate 2.06 times less return on investment than Artifex Mundi. But when comparing it to its historical volatility, Banco Santander SA is 1.58 times less risky than Artifex Mundi. It trades about 0.06 of its potential returns per unit of risk. Artifex Mundi SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Artifex Mundi SA on August 30, 2024 and sell it today you would earn a total of 840.00 from holding Artifex Mundi SA or generate 142.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Banco Santander SA vs. Artifex Mundi SA
Performance |
| Timeline |
| Banco Santander SA |
| Artifex Mundi SA |
Banco Santander and Artifex Mundi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Artifex Mundi
The main advantage of trading using opposite Banco Santander and Artifex Mundi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Artifex Mundi 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 Artifex Mundi will offset losses from the drop in Artifex Mundi's long position.| Banco Santander vs. Alior Bank SA | Banco Santander vs. Asseco Business Solutions | Banco Santander vs. Detalion Games SA | Banco Santander vs. CFI Holding SA |
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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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