Correlation Between Oxurion NV and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Oxurion NV 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 Oxurion NV and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Banco Santander SA, you can compare the effects of market volatilities on Oxurion NV 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 Oxurion NV with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Banco Santander.
Diversification Opportunities for Oxurion NV and Banco Santander
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oxurion and Banco is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA and Oxurion NV 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 Oxurion NV 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 SA has no effect on the direction of Oxurion NV i.e., Oxurion NV and Banco Santander go up and down completely randomly.
Pair Corralation between Oxurion NV and Banco Santander
Assuming the 90 days horizon Oxurion NV is expected to generate 26.56 times more return on investment than Banco Santander. However, Oxurion NV is 26.56 times more volatile than Banco Santander SA. It trades about 0.04 of its potential returns per unit of risk. Banco Santander SA is currently generating about 0.07 per unit of risk. If you would invest 600.00 in Oxurion NV on August 31, 2024 and sell it today you would lose (572.00) from holding Oxurion NV or give up 95.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.75% |
| Values | Daily Returns |
Oxurion NV vs. Banco Santander SA
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Banco Santander SA |
Oxurion NV and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Banco Santander
The main advantage of trading using opposite Oxurion NV and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV 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.| Oxurion NV vs. Molson Coors Beverage | Oxurion NV vs. RYU Apparel | Oxurion NV vs. MOLSON RS BEVERAGE | Oxurion NV vs. INTERCONT HOTELS |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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