Correlation Between Santander Bank and X Trade
Can any of the company-specific risk be diversified away by investing in both Santander Bank and X Trade 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 X Trade 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 X Trade Brokers, you can compare the effects of market volatilities on Santander Bank and X Trade 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 X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and X Trade.
Diversification Opportunities for Santander Bank and X Trade
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Santander and XTB is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers 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 X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Santander Bank i.e., Santander Bank and X Trade go up and down completely randomly.
Pair Corralation between Santander Bank and X Trade
Assuming the 90 days trading horizon Santander Bank Polska is expected to under-perform the X Trade. In addition to that, Santander Bank is 1.6 times more volatile than X Trade Brokers. It trades about 0.0 of its total potential returns per unit of risk. X Trade Brokers is currently generating about 0.24 per unit of volatility. If you would invest 6,562 in X Trade Brokers on August 28, 2024 and sell it today you would earn a total of 518.00 from holding X Trade Brokers or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Bank Polska vs. X Trade Brokers
Performance |
| Timeline |
| Santander Bank Polska |
| X Trade Brokers |
Santander Bank and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and X Trade
The main advantage of trading using opposite Santander Bank and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade'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 |
| X Trade vs. Movie Games SA | X Trade vs. Ice Code Games | X Trade vs. Varsav Game Studios | X Trade vs. Igoria Trade 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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