Correlation Between Santander Bank and Kogeneracja
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Kogeneracja 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 Kogeneracja 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 Kogeneracja SA, you can compare the effects of market volatilities on Santander Bank and Kogeneracja 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 Kogeneracja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Kogeneracja.
Diversification Opportunities for Santander Bank and Kogeneracja
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Santander and Kogeneracja is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Kogeneracja SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kogeneracja 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 Kogeneracja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kogeneracja SA has no effect on the direction of Santander Bank i.e., Santander Bank and Kogeneracja go up and down completely randomly.
Pair Corralation between Santander Bank and Kogeneracja
Assuming the 90 days trading horizon Santander Bank is expected to generate 1.47 times less return on investment than Kogeneracja. But when comparing it to its historical volatility, Santander Bank Polska is 1.56 times less risky than Kogeneracja. It trades about 0.05 of its potential returns per unit of risk. Kogeneracja SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,530 in Kogeneracja SA on September 4, 2024 and sell it today you would earn a total of 1,720 from holding Kogeneracja SA or generate 48.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Bank Polska vs. Kogeneracja SA
Performance |
| Timeline |
| Santander Bank Polska |
| Kogeneracja SA |
Santander Bank and Kogeneracja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Kogeneracja
The main advantage of trading using opposite Santander Bank and Kogeneracja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Kogeneracja 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 Kogeneracja will offset losses from the drop in Kogeneracja's long position.| Santander Bank vs. Bank Millennium SA | Santander Bank vs. Skyline Investment SA | Santander Bank vs. PZ Cormay SA | Santander Bank vs. Alior Bank SA |
| Kogeneracja vs. Banco Santander SA | Kogeneracja vs. UniCredit SpA | Kogeneracja vs. CEZ as | Kogeneracja vs. Polski Koncern Naftowy |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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