Correlation Between 00108WAF7 and BANCO
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By analyzing existing cross correlation between AEP TEX INC and BANCO SANTANDER SA, you can compare the effects of market volatilities on 00108WAF7 and BANCO 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 00108WAF7 with a short position of BANCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and BANCO.
Diversification Opportunities for 00108WAF7 and BANCO
Very good diversification
The 3 months correlation between 00108WAF7 and BANCO is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC 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 00108WAF7 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 AEP TEX INC are associated (or correlated) with BANCO. 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 00108WAF7 i.e., 00108WAF7 and BANCO go up and down completely randomly.
Pair Corralation between 00108WAF7 and BANCO
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 1.81 times more return on investment than BANCO. However, 00108WAF7 is 1.81 times more volatile than BANCO SANTANDER SA. It trades about 0.25 of its potential returns per unit of risk. BANCO SANTANDER SA is currently generating about -0.21 per unit of risk. If you would invest 7,193 in AEP TEX INC on November 3, 2024 and sell it today you would earn a total of 1,028 from holding AEP TEX INC or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
AEP TEX INC vs. BANCO SANTANDER SA
Performance |
| Timeline |
| AEP TEX INC |
| BANCO SANTANDER SA |
00108WAF7 and BANCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and BANCO
The main advantage of trading using opposite 00108WAF7 and BANCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, BANCO 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 will offset losses from the drop in BANCO's long position.| 00108WAF7 vs. DHI Group | 00108WAF7 vs. United Natural Foods | 00108WAF7 vs. Lianhua Supermarket Holdings | 00108WAF7 vs. Q2 Holdings |
| BANCO vs. AEP TEX INC | BANCO vs. US BANK NATIONAL | BANCO vs. Bayerische Motoren Werke | BANCO vs. Check Point Software |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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