Correlation Between Santander Renda and Santander Papeis
Can any of the company-specific risk be diversified away by investing in both Santander Renda and Santander Papeis 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 Santander Papeis 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 Santander Papeis Imobiliarios, you can compare the effects of market volatilities on Santander Renda and Santander Papeis 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 Santander Papeis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Renda and Santander Papeis.
Diversification Opportunities for Santander Renda and Santander Papeis
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Santander and Santander is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Santander Renda De and Santander Papeis Imobiliarios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santander Papeis Imo 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 Santander Papeis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santander Papeis Imo has no effect on the direction of Santander Renda i.e., Santander Renda and Santander Papeis go up and down completely randomly.
Pair Corralation between Santander Renda and Santander Papeis
Assuming the 90 days trading horizon Santander Renda De is expected to generate 0.88 times more return on investment than Santander Papeis. However, Santander Renda De is 1.14 times less risky than Santander Papeis. It trades about 0.21 of its potential returns per unit of risk. Santander Papeis Imobiliarios is currently generating about 0.13 per unit of risk. If you would invest 356.00 in Santander Renda De on November 28, 2024 and sell it today you would earn a total of 18.00 from holding Santander Renda De or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Renda De vs. Santander Papeis Imobiliarios
Performance |
| Timeline |
| Santander Renda De |
| Santander Papeis Imo |
Santander Renda and Santander Papeis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Renda and Santander Papeis
The main advantage of trading using opposite Santander Renda and Santander Papeis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Renda position performs unexpectedly, Santander Papeis 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 Santander Papeis will offset losses from the drop in Santander Papeis' long position.| Santander Renda vs. Santander Papeis Imobiliarios | Santander Renda vs. FDO INV IMOB | Santander Renda vs. SUPREMO FUNDO DE | Santander Renda vs. Real Estate Investment |
| Santander Papeis vs. Santander Renda De | Santander Papeis vs. FDO INV IMOB | Santander Papeis vs. SUPREMO FUNDO DE | Santander Papeis vs. Real Estate Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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