Correlation Between Banco Santander and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on Banco Santander and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Marie Brizard.
Diversification Opportunities for Banco Santander and Marie Brizard
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banco and Marie is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Banco Santander i.e., Banco Santander and Marie Brizard go up and down completely randomly.
Pair Corralation between Banco Santander and Marie Brizard
Assuming the 90 days trading horizon Banco Santander is expected to generate 1.74 times less return on investment than Marie Brizard. But when comparing it to its historical volatility, Banco Santander SA is 1.69 times less risky than Marie Brizard. It trades about 0.06 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Marie Brizard Wine on August 31, 2024 and sell it today you would earn a total of 645.00 from holding Marie Brizard Wine or generate 64.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Banco Santander SA vs. Marie Brizard Wine
Performance |
| Timeline |
| Banco Santander SA |
| Marie Brizard Wine |
Banco Santander and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Marie Brizard
The main advantage of trading using opposite Banco Santander and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Banco Santander vs. Asseco Business Solutions | Banco Santander vs. Detalion Games SA | Banco Santander vs. Asseco South Eastern | Banco Santander vs. CFI Holding SA |
| Marie Brizard vs. Skyline Investment SA | Marie Brizard vs. Movie Games SA | Marie Brizard vs. PMPG Polskie Media | Marie Brizard vs. 3R Games SA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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