Correlation Between Santander Bank and Altustfi
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Altustfi 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 Bank and Altustfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santander Bank Polska and Altustfi, you can compare the effects of market volatilities on Santander Bank and Altustfi 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 Bank with a short position of Altustfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Altustfi.
Diversification Opportunities for Santander Bank and Altustfi
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Santander and Altustfi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Altustfi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altustfi and Santander Bank 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 Bank Polska are associated (or correlated) with Altustfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altustfi has no effect on the direction of Santander Bank i.e., Santander Bank and Altustfi go up and down completely randomly.
Pair Corralation between Santander Bank and Altustfi
Assuming the 90 days trading horizon Santander Bank is expected to generate 9.84 times less return on investment than Altustfi. But when comparing it to its historical volatility, Santander Bank Polska is 2.3 times less risky than Altustfi. It trades about 0.0 of its potential returns per unit of risk. Altustfi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Altustfi on September 2, 2024 and sell it today you would lose (5.00) from holding Altustfi or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Bank Polska vs. Altustfi
Performance |
| Timeline |
| Santander Bank Polska |
| Altustfi |
Santander Bank and Altustfi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Altustfi
The main advantage of trading using opposite Santander Bank and Altustfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Altustfi 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 Altustfi will offset losses from the drop in Altustfi's long position.| Santander Bank vs. PZ Cormay SA | Santander Bank vs. MW Trade SA | Santander Bank vs. LSI Software SA | Santander Bank vs. Logintrade SA |
| Altustfi vs. Investment Friends Capital | Altustfi vs. Quantum Software SA | Altustfi vs. New Tech Venture | Altustfi vs. Mlk Foods Public |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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