Correlation Between Compania and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Compania 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 Compania and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compania de Transporte and Banco Santander Ro, you can compare the effects of market volatilities on Compania 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 Compania with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania and Banco Santander.
Diversification Opportunities for Compania and Banco Santander
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compania and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compania de Transporte and Banco Santander Ro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Ro and Compania 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 Compania de Transporte 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 Ro has no effect on the direction of Compania i.e., Compania and Banco Santander go up and down completely randomly.
Pair Corralation between Compania and Banco Santander
If you would invest 160,100 in Compania de Transporte on August 31, 2024 and sell it today you would earn a total of 62,400 from holding Compania de Transporte or generate 38.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compania de Transporte vs. Banco Santander Ro
Performance |
| Timeline |
| Compania de Transporte |
| Banco Santander Ro |
Compania and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania and Banco Santander
The main advantage of trading using opposite Compania and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania 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.| Compania vs. Agrometal SAI | Compania vs. Telecom Argentina | Compania vs. Harmony Gold Mining | Compania vs. United States Steel |
| Banco Santander vs. Compania de Transporte | Banco Santander vs. Harmony Gold Mining | Banco Santander vs. Telecom Argentina |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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