Correlation Between Santander Bank and CI Games
Can any of the company-specific risk be diversified away by investing in both Santander Bank and CI Games 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 CI Games 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 CI Games SA, you can compare the effects of market volatilities on Santander Bank and CI Games 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 CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and CI Games.
Diversification Opportunities for Santander Bank and CI Games
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Santander and CIG is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and CI Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Games 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 CI Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Games SA has no effect on the direction of Santander Bank i.e., Santander Bank and CI Games go up and down completely randomly.
Pair Corralation between Santander Bank and CI Games
Assuming the 90 days trading horizon Santander Bank Polska is expected to under-perform the CI Games. In addition to that, Santander Bank is 2.01 times more volatile than CI Games SA. It trades about -0.22 of its total potential returns per unit of risk. CI Games SA is currently generating about -0.19 per unit of volatility. If you would invest 154.00 in CI Games SA on August 30, 2024 and sell it today you would lose (6.00) from holding CI Games SA or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Bank Polska vs. CI Games SA
Performance |
| Timeline |
| Santander Bank Polska |
| CI Games SA |
Santander Bank and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and CI Games
The main advantage of trading using opposite Santander Bank and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, CI Games 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 CI Games will offset losses from the drop in CI Games' long position.| Santander Bank vs. New Tech Venture | Santander Bank vs. MCI Management SA | Santander Bank vs. Medicofarma Biotech SA | Santander Bank vs. Quantum Software SA |
| CI Games vs. Movie Games SA | CI Games vs. 3R Games SA | CI Games vs. Intersport Polska SA | CI Games vs. Monnari Trade SA |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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