Correlation Between SANTANDER and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both SANTANDER and Bellevue Healthcare 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 SANTANDER and Bellevue Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANTANDER UK 8 and Bellevue Healthcare Trust, you can compare the effects of market volatilities on SANTANDER and Bellevue Healthcare 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 SANTANDER with a short position of Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and Bellevue Healthcare.
Diversification Opportunities for SANTANDER and Bellevue Healthcare
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SANTANDER and Bellevue is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 8 and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust and 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 SANTANDER UK 8 are associated (or correlated) with Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of SANTANDER i.e., SANTANDER and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between SANTANDER and Bellevue Healthcare
Assuming the 90 days trading horizon SANTANDER UK 8 is expected to generate 0.08 times more return on investment than Bellevue Healthcare. However, SANTANDER UK 8 is 13.14 times less risky than Bellevue Healthcare. It trades about 0.0 of its potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about -0.01 per unit of risk. If you would invest 13,550 in SANTANDER UK 8 on September 12, 2024 and sell it today you would earn a total of 0.00 from holding SANTANDER UK 8 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SANTANDER UK 8 vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| SANTANDER UK 8 |
| Bellevue Healthcare Trust |
SANTANDER and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANTANDER and Bellevue Healthcare
The main advantage of trading using opposite SANTANDER and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANTANDER position performs unexpectedly, Bellevue Healthcare 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 Bellevue Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| SANTANDER vs. Vulcan Materials Co | SANTANDER vs. Ryanair Holdings plc | SANTANDER vs. Morgan Advanced Materials | SANTANDER vs. Amedeo Air Four |
| Bellevue Healthcare vs. Samsung Electronics Co | Bellevue Healthcare vs. Samsung Electronics Co | Bellevue Healthcare vs. Hyundai Motor | Bellevue Healthcare vs. Toyota Motor Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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