Correlation Between Banco Santander and Procter Gamble
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Procter Gamble 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 Banco Santander and Procter Gamble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander SA and Procter Gamble DRC, you can compare the effects of market volatilities on Banco Santander and Procter Gamble 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 Banco Santander with a short position of Procter Gamble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Procter Gamble.
Diversification Opportunities for Banco Santander and Procter Gamble
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banco and Procter is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Procter Gamble DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procter Gamble DRC and Banco Santander 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 Banco Santander SA are associated (or correlated) with Procter Gamble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procter Gamble DRC has no effect on the direction of Banco Santander i.e., Banco Santander and Procter Gamble go up and down completely randomly.
Pair Corralation between Banco Santander and Procter Gamble
Assuming the 90 days trading horizon Banco Santander SA is not expected to generate positive returns. However, Banco Santander SA is 120.22 times less risky than Procter Gamble. It waists most of its returns potential to compensate for thr risk taken. Procter Gamble is generating about -0.2 per unit of risk. If you would invest 16,723 in Banco Santander SA on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Banco Santander SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Banco Santander SA vs. Procter Gamble DRC
Performance |
| Timeline |
| Banco Santander SA |
| Procter Gamble DRC |
Banco Santander and Procter Gamble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Procter Gamble
The main advantage of trading using opposite Banco Santander and Procter Gamble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Procter Gamble 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 Procter Gamble will offset losses from the drop in Procter Gamble's long position.| Banco Santander vs. Alibaba Group Holding | Banco Santander vs. Apple Inc DRC | Banco Santander vs. Alphabet Inc Class A CEDEAR | Banco Santander vs. Amazon Inc |
| Procter Gamble vs. Harmony Gold Mining | Procter Gamble vs. Transportadora de Gas | Procter Gamble vs. United States Steel | Procter Gamble vs. Agrometal SAI |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |