Correlation Between Santander Bank and Artifex Mundi
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Artifex Mundi 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 Artifex Mundi 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 Artifex Mundi SA, you can compare the effects of market volatilities on Santander Bank and Artifex Mundi 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 Artifex Mundi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Artifex Mundi.
Diversification Opportunities for Santander Bank and Artifex Mundi
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Santander and Artifex is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Artifex Mundi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artifex Mundi SA 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 Artifex Mundi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artifex Mundi SA has no effect on the direction of Santander Bank i.e., Santander Bank and Artifex Mundi go up and down completely randomly.
Pair Corralation between Santander Bank and Artifex Mundi
Assuming the 90 days trading horizon Santander Bank Polska is expected to generate 0.44 times more return on investment than Artifex Mundi. However, Santander Bank Polska is 2.27 times less risky than Artifex Mundi. It trades about -0.22 of its potential returns per unit of risk. Artifex Mundi SA is currently generating about -0.26 per unit of risk. If you would invest 48,080 in Santander Bank Polska on August 30, 2024 and sell it today you would lose (4,300) from holding Santander Bank Polska or give up 8.94% 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. Artifex Mundi SA
Performance |
| Timeline |
| Santander Bank Polska |
| Artifex Mundi SA |
Santander Bank and Artifex Mundi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Artifex Mundi
The main advantage of trading using opposite Santander Bank and Artifex Mundi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Artifex Mundi 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 Artifex Mundi will offset losses from the drop in Artifex Mundi's long position.| Santander Bank vs. mBank SA | Santander Bank vs. UF Games SA | Santander Bank vs. Echo Investment SA | Santander Bank vs. Gaming Factory SA |
| Artifex Mundi vs. Movie Games SA | Artifex Mundi vs. LSI Software SA | Artifex Mundi vs. Ultimate Games SA | Artifex Mundi vs. SOFTWARE MANSION SPOLKA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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