Correlation Between Santander Bank and Immobile
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Immobile 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 Immobile 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 Immobile, you can compare the effects of market volatilities on Santander Bank and Immobile 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 Immobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Immobile.
Diversification Opportunities for Santander Bank and Immobile
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Santander and Immobile is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Immobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immobile 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 Immobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immobile has no effect on the direction of Santander Bank i.e., Santander Bank and Immobile go up and down completely randomly.
Pair Corralation between Santander Bank and Immobile
Assuming the 90 days trading horizon Santander Bank Polska is expected to generate 0.65 times more return on investment than Immobile. However, Santander Bank Polska is 1.53 times less risky than Immobile. It trades about 0.08 of its potential returns per unit of risk. Immobile is currently generating about 0.01 per unit of risk. If you would invest 22,847 in Santander Bank Polska on September 2, 2024 and sell it today you would earn a total of 20,873 from holding Santander Bank Polska or generate 91.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Bank Polska vs. Immobile
Performance |
| Timeline |
| Santander Bank Polska |
| Immobile |
Santander Bank and Immobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Immobile
The main advantage of trading using opposite Santander Bank and Immobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Immobile 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 Immobile will offset losses from the drop in Immobile'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 |
| Immobile vs. Carlson Investments SA | Immobile vs. Alior Bank SA | Immobile vs. Play2Chill SA | Immobile vs. Skyline Investment 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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