Correlation Between SANTANDER and Zinc Media
Can any of the company-specific risk be diversified away by investing in both SANTANDER and Zinc Media 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 Zinc Media 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 Zinc Media Group, you can compare the effects of market volatilities on SANTANDER and Zinc Media 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and Zinc Media.
Diversification Opportunities for SANTANDER and Zinc Media
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SANTANDER and Zinc is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 8 and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media Group 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of SANTANDER i.e., SANTANDER and Zinc Media go up and down completely randomly.
Pair Corralation between SANTANDER and Zinc Media
Assuming the 90 days trading horizon SANTANDER UK 8 is expected to generate 0.13 times more return on investment than Zinc Media. However, SANTANDER UK 8 is 7.92 times less risky than Zinc Media. It trades about 0.16 of its potential returns per unit of risk. Zinc Media Group is currently generating about -0.13 per unit of risk. If you would invest 12,742 in SANTANDER UK 8 on September 23, 2024 and sell it today you would earn a total of 908.00 from holding SANTANDER UK 8 or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANTANDER UK 8 vs. Zinc Media Group
Performance |
| Timeline |
| SANTANDER UK 8 |
| Zinc Media Group |
SANTANDER and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANTANDER and Zinc Media
The main advantage of trading using opposite SANTANDER and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANTANDER position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| SANTANDER vs. CVR Energy | SANTANDER vs. Viridian Therapeutics | SANTANDER vs. Nationwide Building Society | SANTANDER vs. Digital Realty Trust |
| Zinc Media vs. SupplyMe Capital PLC | Zinc Media vs. Lloyds Banking Group | Zinc Media vs. Premier African Minerals | Zinc Media vs. SANTANDER UK 8 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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