Correlation Between Santander Bank and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Marie Brizard 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 Marie Brizard 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 Marie Brizard Wine, you can compare the effects of market volatilities on Santander Bank and Marie Brizard 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 Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Marie Brizard.
Diversification Opportunities for Santander Bank and Marie Brizard
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Santander and Marie is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine 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 Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Santander Bank i.e., Santander Bank and Marie Brizard go up and down completely randomly.
Pair Corralation between Santander Bank and Marie Brizard
Assuming the 90 days trading horizon Santander Bank Polska is expected to generate 0.55 times more return on investment than Marie Brizard. However, Santander Bank Polska is 1.82 times less risky than Marie Brizard. It trades about 0.18 of its potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.01 per unit of risk. If you would invest 46,300 in Santander Bank Polska on October 22, 2024 and sell it today you would earn a total of 1,640 from holding Santander Bank Polska or generate 3.54% 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. Marie Brizard Wine
Performance |
| Timeline |
| Santander Bank Polska |
| Marie Brizard Wine |
Santander Bank and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Marie Brizard
The main advantage of trading using opposite Santander Bank and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Santander Bank vs. Immobile | Santander Bank vs. Skyline Investment SA | Santander Bank vs. Echo Investment SA | Santander Bank vs. Carlson Investments SA |
| Marie Brizard vs. Bank Millennium SA | Marie Brizard vs. LSI Software SA | Marie Brizard vs. GreenX Metals | Marie Brizard vs. Echo 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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