Correlation Between Santander Consumer and X Financial
Can any of the company-specific risk be diversified away by investing in both Santander Consumer and X Financial 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 Santander Consumer and X Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santander Consumer USA and X Financial Class, you can compare the effects of market volatilities on Santander Consumer and X Financial 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 Santander Consumer with a short position of X Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Consumer and X Financial.
Diversification Opportunities for Santander Consumer and X Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Santander and XYF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Santander Consumer USA and X Financial Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Financial Class and Santander Consumer 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 Santander Consumer USA are associated (or correlated) with X Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Financial Class has no effect on the direction of Santander Consumer i.e., Santander Consumer and X Financial go up and down completely randomly.
Pair Corralation between Santander Consumer and X Financial
If you would invest (100.00) in Santander Consumer USA on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Santander Consumer USA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Santander Consumer USA vs. X Financial Class
Performance |
| Timeline |
| Santander Consumer USA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| X Financial Class |
Santander Consumer and X Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Consumer and X Financial
The main advantage of trading using opposite Santander Consumer and X Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Consumer position performs unexpectedly, X Financial 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 X Financial will offset losses from the drop in X Financial's long position.| Santander Consumer vs. Portland General Electric | Santander Consumer vs. Kinetik Holdings | Santander Consumer vs. AerSale Corp | Santander Consumer vs. Antero Midstream Partners |
| X Financial vs. Visa Class A | X Financial vs. Mastercard | X Financial vs. Oshidori International Holdings | X Financial vs. US70082LAB36 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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