Correlation Between Stellar Bancorp, and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Stellar Bancorp, and Banco Santander 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 Stellar Bancorp, and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellar Bancorp, and Banco Santander Brasil, you can compare the effects of market volatilities on Stellar Bancorp, and Banco Santander 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 Stellar Bancorp, with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar Bancorp, and Banco Santander.
Diversification Opportunities for Stellar Bancorp, and Banco Santander
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stellar and Banco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Stellar Bancorp, and Banco Santander Brasil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Brasil and Stellar Bancorp, 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 Stellar Bancorp, are associated (or correlated) with Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander Brasil has no effect on the direction of Stellar Bancorp, i.e., Stellar Bancorp, and Banco Santander go up and down completely randomly.
Pair Corralation between Stellar Bancorp, and Banco Santander
Given the investment horizon of 90 days Stellar Bancorp, is expected to under-perform the Banco Santander. But the stock apears to be less risky and, when comparing its historical volatility, Stellar Bancorp, is 1.23 times less risky than Banco Santander. The stock trades about -0.02 of its potential returns per unit of risk. The Banco Santander Brasil is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Banco Santander Brasil on October 24, 2024 and sell it today you would earn a total of 36.00 from holding Banco Santander Brasil or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellar Bancorp, vs. Banco Santander Brasil
Performance |
| Timeline |
| Stellar Bancorp, |
| Banco Santander Brasil |
Stellar Bancorp, and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar Bancorp, and Banco Santander
The main advantage of trading using opposite Stellar Bancorp, and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar Bancorp, position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| Stellar Bancorp, vs. LINKBANCORP | Stellar Bancorp, vs. Coastal Financial Corp | Stellar Bancorp, vs. Finward Bancorp | Stellar Bancorp, vs. CrossFirst Bankshares |
| Banco Santander vs. Banco De Chile | Banco Santander vs. CrossFirst Bankshares | Banco Santander vs. Banco Bradesco SA | Banco Santander vs. CF Bankshares |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |