Correlation Between Santos and Tremor International
Can any of the company-specific risk be diversified away by investing in both Santos and Tremor International 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 Santos and Tremor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santos Ltd ADR and Tremor International, you can compare the effects of market volatilities on Santos and Tremor International 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 Santos with a short position of Tremor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santos and Tremor International.
Diversification Opportunities for Santos and Tremor International
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Santos and Tremor is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Santos Ltd ADR and Tremor International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tremor International and Santos 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 Santos Ltd ADR are associated (or correlated) with Tremor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tremor International has no effect on the direction of Santos i.e., Santos and Tremor International go up and down completely randomly.
Pair Corralation between Santos and Tremor International
If you would invest 300.00 in Tremor International on September 1, 2024 and sell it today you would earn a total of 184.00 from holding Tremor International or generate 61.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 0.79% |
Values | Daily Returns |
Santos Ltd ADR vs. Tremor International
Performance |
Timeline |
Santos Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tremor International |
Santos and Tremor International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Santos and Tremor International
The main advantage of trading using opposite Santos and Tremor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santos position performs unexpectedly, Tremor International 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 Tremor International will offset losses from the drop in Tremor International's long position.Santos vs. Aker BP ASA | Santos vs. Woodside Energy Group | Santos vs. APA Corporation | Santos vs. EQT Corporation |
Tremor International vs. Beyond Commerce | Tremor International vs. Baosheng Media Group | Tremor International vs. MGO Global Common | Tremor International vs. CMG Holdings Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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