Correlation Between Grupo Security and Banco Santander
Specify exactly 2 symbols:
By analyzing existing cross correlation between Grupo Security and Banco Santander Chile, you can compare the effects of market volatilities on Grupo Security and Banco Santander 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 Grupo Security with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Security and Banco Santander.
Diversification Opportunities for Grupo Security and Banco Santander
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Banco is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Security and Banco Santander Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Chile and Grupo Security 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 Grupo Security are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Chile has no effect on the direction of Grupo Security i.e., Grupo Security and Banco Santander go up and down completely randomly.
Pair Corralation between Grupo Security and Banco Santander
Assuming the 90 days trading horizon Grupo Security is expected to under-perform the Banco Santander. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Security is 1.47 times less risky than Banco Santander. The stock trades about -0.14 of its potential returns per unit of risk. The Banco Santander Chile is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,765 in Banco Santander Chile on September 12, 2024 and sell it today you would lose (45.00) from holding Banco Santander Chile or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Security vs. Banco Santander Chile
Performance |
| Timeline |
| Grupo Security |
| Banco Santander Chile |
Grupo Security and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Security and Banco Santander
The main advantage of trading using opposite Grupo Security and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Security position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| Grupo Security vs. Banco Santander Chile | Grupo Security vs. Banco de Chile | Grupo Security vs. Falabella | Grupo Security vs. Empresas Copec SA |
| Banco Santander vs. Banco de Chile | Banco Santander vs. Banco de Credito | Banco Santander vs. Cencosud | Banco Santander vs. Falabella |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |