Correlation Between Santander Bank and Pixel Crow
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Pixel Crow 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 Pixel Crow 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 Pixel Crow Games, you can compare the effects of market volatilities on Santander Bank and Pixel Crow 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 Pixel Crow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Pixel Crow.
Diversification Opportunities for Santander Bank and Pixel Crow
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Santander and Pixel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Pixel Crow Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pixel Crow Games 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 Pixel Crow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pixel Crow Games has no effect on the direction of Santander Bank i.e., Santander Bank and Pixel Crow go up and down completely randomly.
Pair Corralation between Santander Bank and Pixel Crow
Assuming the 90 days trading horizon Santander Bank Polska is expected to generate 0.47 times more return on investment than Pixel Crow. However, Santander Bank Polska is 2.11 times less risky than Pixel Crow. It trades about -0.01 of its potential returns per unit of risk. Pixel Crow Games is currently generating about -0.27 per unit of risk. If you would invest 44,830 in Santander Bank Polska on August 26, 2024 and sell it today you would lose (530.00) from holding Santander Bank Polska or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Santander Bank Polska vs. Pixel Crow Games
Performance |
| Timeline |
| Santander Bank Polska |
| Pixel Crow Games |
Santander Bank and Pixel Crow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Pixel Crow
The main advantage of trading using opposite Santander Bank and Pixel Crow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Pixel Crow 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 Pixel Crow will offset losses from the drop in Pixel Crow's long position.The idea behind Santander Bank Polska and Pixel Crow Games pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pixel Crow vs. NGG | Pixel Crow vs. Asseco Business Solutions | Pixel Crow vs. Detalion Games SA | Pixel Crow vs. Asseco South Eastern |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |