Correlation Between Santander Bank and Robs Group
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Robs Group 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 Robs Group 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 Robs Group Logistic, you can compare the effects of market volatilities on Santander Bank and Robs Group 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 Robs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Robs Group.
Diversification Opportunities for Santander Bank and Robs Group
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Santander and Robs is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Robs Group Logistic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robs Group Logistic 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 Robs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robs Group Logistic has no effect on the direction of Santander Bank i.e., Santander Bank and Robs Group go up and down completely randomly.
Pair Corralation between Santander Bank and Robs Group
Assuming the 90 days trading horizon Santander Bank Polska is expected to generate 0.27 times more return on investment than Robs Group. However, Santander Bank Polska is 3.67 times less risky than Robs Group. It trades about 0.08 of its potential returns per unit of risk. Robs Group Logistic is currently generating about -0.04 per unit of risk. If you would invest 23,163 in Santander Bank Polska on August 27, 2024 and sell it today you would earn a total of 21,137 from holding Santander Bank Polska or generate 91.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.39% |
| Values | Daily Returns |
Santander Bank Polska vs. Robs Group Logistic
Performance |
| Timeline |
| Santander Bank Polska |
| Robs Group Logistic |
Santander Bank and Robs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Robs Group
The main advantage of trading using opposite Santander Bank and Robs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Robs Group 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 Robs Group will offset losses from the drop in Robs Group's long position.| Santander Bank vs. GreenX Metals | Santander Bank vs. LSI Software SA | Santander Bank vs. UniCredit SpA | Santander Bank vs. Noble Financials SA |
| Robs Group vs. SOFTWARE MANSION SPOLKA | Robs Group vs. LSI Software SA | Robs Group vs. Enter Air SA | Robs Group vs. Quantum Software 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 Stocks Directory module to find actively traded stocks across global markets.
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