Correlation Between Banco Santander and Oponeopl
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Oponeopl 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 Oponeopl 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 Oponeopl SA, you can compare the effects of market volatilities on Banco Santander and Oponeopl 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 Oponeopl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Oponeopl.
Diversification Opportunities for Banco Santander and Oponeopl
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banco and Oponeopl is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Oponeopl SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oponeopl 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 Oponeopl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oponeopl SA has no effect on the direction of Banco Santander i.e., Banco Santander and Oponeopl go up and down completely randomly.
Pair Corralation between Banco Santander and Oponeopl
Assuming the 90 days trading horizon Banco Santander SA is expected to under-perform the Oponeopl. But the stock apears to be less risky and, when comparing its historical volatility, Banco Santander SA is 1.53 times less risky than Oponeopl. The stock trades about -0.02 of its potential returns per unit of risk. The Oponeopl SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,714 in Oponeopl SA on September 1, 2024 and sell it today you would earn a total of 1,266 from holding Oponeopl SA or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Banco Santander SA vs. Oponeopl SA
Performance |
| Timeline |
| Banco Santander SA |
| Oponeopl SA |
Banco Santander and Oponeopl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Oponeopl
The main advantage of trading using opposite Banco Santander and Oponeopl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Oponeopl 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 Oponeopl will offset losses from the drop in Oponeopl's long position.| Banco Santander vs. Quantum Software SA | Banco Santander vs. New Tech Venture | Banco Santander vs. Enter Air SA | Banco Santander vs. BNP Paribas Bank |
| Oponeopl vs. Banco Santander SA | Oponeopl vs. UniCredit SpA | Oponeopl vs. CEZ as | Oponeopl 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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