Correlation Between Santander Renda and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Santander Renda and Dow Jones 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 Renda and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santander Renda De and Dow Jones Industrial, you can compare the effects of market volatilities on Santander Renda and Dow Jones 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 Renda with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Renda and Dow Jones.
Diversification Opportunities for Santander Renda and Dow Jones
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Santander and Dow is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Santander Renda De and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Santander Renda 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 Renda De are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Santander Renda i.e., Santander Renda and Dow Jones go up and down completely randomly.
Pair Corralation between Santander Renda and Dow Jones
Assuming the 90 days trading horizon Santander Renda De is expected to under-perform the Dow Jones. In addition to that, Santander Renda is 5.91 times more volatile than Dow Jones Industrial. It trades about -0.06 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,347,646 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 1,124,560 from holding Dow Jones Industrial or generate 33.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Santander Renda De vs. Dow Jones Industrial
Performance |
| Timeline |
Santander Renda and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Santander Renda De
Pair trading matchups for Santander Renda
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Santander Renda and Dow Jones
The main advantage of trading using opposite Santander Renda and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Renda position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Santander Renda vs. Energisa SA | Santander Renda vs. BTG Pactual Logstica | Santander Renda vs. Plano Plano Desenvolvimento | Santander Renda vs. The Procter Gamble |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |