Correlation Between Banco Santander and Atlantis
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Atlantis 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 Atlantis 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 Atlantis SA, you can compare the effects of market volatilities on Banco Santander and Atlantis 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 Atlantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Atlantis.
Diversification Opportunities for Banco Santander and Atlantis
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banco and Atlantis is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Atlantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis 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 Atlantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis SA has no effect on the direction of Banco Santander i.e., Banco Santander and Atlantis go up and down completely randomly.
Pair Corralation between Banco Santander and Atlantis
Assuming the 90 days trading horizon Banco Santander SA is expected to generate 0.27 times more return on investment than Atlantis. However, Banco Santander SA is 3.64 times less risky than Atlantis. It trades about 0.06 of its potential returns per unit of risk. Atlantis SA is currently generating about -0.03 per unit of risk. If you would invest 1,434 in Banco Santander SA on October 24, 2024 and sell it today you would earn a total of 617.00 from holding Banco Santander SA or generate 43.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Banco Santander SA vs. Atlantis SA
Performance |
| Timeline |
| Banco Santander SA |
| Atlantis SA |
Banco Santander and Atlantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Atlantis
The main advantage of trading using opposite Banco Santander and Atlantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Atlantis 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 Atlantis will offset losses from the drop in Atlantis' long position.| Banco Santander vs. Cloud Technologies SA | Banco Santander vs. CI Games SA | Banco Santander vs. Saule Technologies SA | Banco Santander vs. Movie Games SA |
| Atlantis vs. Banco Santander SA | Atlantis vs. UniCredit SpA | Atlantis vs. CEZ as | Atlantis vs. Polski Koncern Naftowy |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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