Correlation Between Santander Bank and Grupa HRC
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Grupa HRC 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 Grupa HRC 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 Grupa HRC SA, you can compare the effects of market volatilities on Santander Bank and Grupa HRC 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 Grupa HRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Grupa HRC.
Diversification Opportunities for Santander Bank and Grupa HRC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Santander and Grupa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Grupa HRC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa HRC 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 Grupa HRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa HRC SA has no effect on the direction of Santander Bank i.e., Santander Bank and Grupa HRC go up and down completely randomly.
Pair Corralation between Santander Bank and Grupa HRC
If you would invest 47,010 in Santander Bank Polska on October 20, 2024 and sell it today you would earn a total of 930.00 from holding Santander Bank Polska or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Santander Bank Polska vs. Grupa HRC SA
Performance |
| Timeline |
| Santander Bank Polska |
| Grupa HRC SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Santander Bank and Grupa HRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Grupa HRC
The main advantage of trading using opposite Santander Bank and Grupa HRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Grupa HRC 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 Grupa HRC will offset losses from the drop in Grupa HRC's long position.| Santander Bank vs. Echo Investment SA | Santander Bank vs. Road Studio SA | Santander Bank vs. PLAYWAY SA | Santander Bank vs. Enter Air SA |
| Grupa HRC vs. M Food SA | Grupa HRC vs. LSI Software SA | Grupa HRC vs. GreenX Metals | Grupa HRC vs. Santander Bank Polska |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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