Correlation Between Banco Santander and TEN SQUARE
Can any of the company-specific risk be diversified away by investing in both Banco Santander and TEN SQUARE 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 TEN SQUARE 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 TEN SQUARE GAMES, you can compare the effects of market volatilities on Banco Santander and TEN SQUARE 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 TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and TEN SQUARE.
Diversification Opportunities for Banco Santander and TEN SQUARE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banco and TEN is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES 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 TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of Banco Santander i.e., Banco Santander and TEN SQUARE go up and down completely randomly.
Pair Corralation between Banco Santander and TEN SQUARE
Assuming the 90 days trading horizon Banco Santander SA is expected to under-perform the TEN SQUARE. But the stock apears to be less risky and, when comparing its historical volatility, Banco Santander SA is 1.33 times less risky than TEN SQUARE. The stock trades about -0.11 of its potential returns per unit of risk. The TEN SQUARE GAMES is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 8,360 in TEN SQUARE GAMES on August 27, 2024 and sell it today you would lose (330.00) from holding TEN SQUARE GAMES or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Santander SA vs. TEN SQUARE GAMES
Performance |
| Timeline |
| Banco Santander SA |
| TEN SQUARE GAMES |
Banco Santander and TEN SQUARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and TEN SQUARE
The main advantage of trading using opposite Banco Santander and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.| Banco Santander vs. Asseco Business Solutions | Banco Santander vs. Detalion Games SA | Banco Santander vs. Asseco South Eastern | Banco Santander vs. Movie 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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