Correlation Between Santander Bank and Stalexport Autostrady
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Stalexport Autostrady 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 Stalexport Autostrady 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 Stalexport Autostrady SA, you can compare the effects of market volatilities on Santander Bank and Stalexport Autostrady 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 Stalexport Autostrady. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Stalexport Autostrady.
Diversification Opportunities for Santander Bank and Stalexport Autostrady
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Santander and Stalexport is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Stalexport Autostrady SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stalexport Autostrady 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 Stalexport Autostrady. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stalexport Autostrady has no effect on the direction of Santander Bank i.e., Santander Bank and Stalexport Autostrady go up and down completely randomly.
Pair Corralation between Santander Bank and Stalexport Autostrady
Assuming the 90 days trading horizon Santander Bank Polska is expected to under-perform the Stalexport Autostrady. In addition to that, Santander Bank is 2.06 times more volatile than Stalexport Autostrady SA. It trades about -0.05 of its total potential returns per unit of risk. Stalexport Autostrady SA is currently generating about 0.02 per unit of volatility. If you would invest 284.00 in Stalexport Autostrady SA on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Stalexport Autostrady SA or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Santander Bank Polska vs. Stalexport Autostrady SA
Performance |
| Timeline |
| Santander Bank Polska |
| Stalexport Autostrady |
Santander Bank and Stalexport Autostrady Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Stalexport Autostrady
The main advantage of trading using opposite Santander Bank and Stalexport Autostrady positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Stalexport Autostrady 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 Stalexport Autostrady will offset losses from the drop in Stalexport Autostrady's long position.| Santander Bank vs. ING Bank lski | Santander Bank vs. PMPG Polskie Media | Santander Bank vs. Noble Financials SA | Santander Bank vs. New Tech Venture |
| Stalexport Autostrady vs. Banco Santander SA | Stalexport Autostrady vs. UniCredit SpA | Stalexport Autostrady vs. CEZ as | Stalexport Autostrady 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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