Correlation Between Banco Santander and Yahoo
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Yahoo 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 Yahoo 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 Yahoo Inc, you can compare the effects of market volatilities on Banco Santander and Yahoo 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 Yahoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Yahoo.
Diversification Opportunities for Banco Santander and Yahoo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Yahoo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander SA and Yahoo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yahoo Inc 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 Yahoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yahoo Inc has no effect on the direction of Banco Santander i.e., Banco Santander and Yahoo go up and down completely randomly.
Pair Corralation between Banco Santander and Yahoo
If you would invest 394.00 in Banco Santander SA on January 26, 2024 and sell it today you would earn a total of 111.00 from holding Banco Santander SA or generate 28.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Banco Santander SA vs. Yahoo Inc
Performance |
| Timeline |
| Banco Santander SA |
| Yahoo Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Banco Santander and Yahoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Santander and Yahoo
The main advantage of trading using opposite Banco Santander and Yahoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Yahoo 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 Yahoo will offset losses from the drop in Yahoo's long position.| Banco Santander vs. Barclays PLC ADR | Banco Santander vs. ING Group NV | Banco Santander vs. HSBC Holdings PLC | Banco Santander vs. Natwest Group PLC |
| Yahoo vs. Air Transport Services | Yahoo vs. Alto Ingredients | Yahoo vs. Alaska Air Group | Yahoo vs. Azul SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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