Correlation Between Banco Santander and Gielda Papierow
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Gielda Papierow 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 Gielda Papierow 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 Gielda Papierow Wartosciowych, you can compare the effects of market volatilities on Banco Santander and Gielda Papierow 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 Gielda Papierow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Gielda Papierow.
Diversification Opportunities for Banco Santander and Gielda Papierow
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Gielda is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Gielda Papierow Wartosciowych in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gielda Papierow Wart 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 Gielda Papierow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gielda Papierow Wart has no effect on the direction of Banco Santander i.e., Banco Santander and Gielda Papierow go up and down completely randomly.
Pair Corralation between Banco Santander and Gielda Papierow
Assuming the 90 days trading horizon Banco Santander SA is expected to under-perform the Gielda Papierow. In addition to that, Banco Santander is 1.58 times more volatile than Gielda Papierow Wartosciowych. It trades about -0.15 of its total potential returns per unit of risk. Gielda Papierow Wartosciowych is currently generating about 0.04 per unit of volatility. If you would invest 4,265 in Gielda Papierow Wartosciowych on September 4, 2024 and sell it today you would earn a total of 35.00 from holding Gielda Papierow Wartosciowych or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander SA vs. Gielda Papierow Wartosciowych
Performance |
| Timeline |
| Banco Santander SA |
| Gielda Papierow Wart |
Banco Santander and Gielda Papierow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Gielda Papierow
The main advantage of trading using opposite Banco Santander and Gielda Papierow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Gielda Papierow 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 Gielda Papierow will offset losses from the drop in Gielda Papierow's long position.| Banco Santander vs. Alior Bank SA | Banco Santander vs. Asseco South Eastern | Banco Santander vs. Vercom SA | Banco Santander vs. CFI Holding SA |
| Gielda Papierow vs. BNP Paribas Bank | Gielda Papierow vs. mBank SA | Gielda Papierow vs. Gaming Factory SA | Gielda Papierow vs. TEN SQUARE GAMES |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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