Correlation Between Raiffeisen Bank and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Raiffeisen Bank 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 Raiffeisen Bank and Banco Santander into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raiffeisen Bank International and Banco Santander Brasil, you can compare the effects of market volatilities on Raiffeisen Bank 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 Raiffeisen Bank with a short position of Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raiffeisen Bank and Banco Santander.
Diversification Opportunities for Raiffeisen Bank and Banco Santander
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Raiffeisen and Banco is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Raiffeisen Bank International and Banco Santander Brasil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander Brasil and Raiffeisen Bank 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 Raiffeisen Bank International 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 Brasil has no effect on the direction of Raiffeisen Bank i.e., Raiffeisen Bank and Banco Santander go up and down completely randomly.
Pair Corralation between Raiffeisen Bank and Banco Santander
Assuming the 90 days horizon Raiffeisen Bank International is expected to generate 1.65 times more return on investment than Banco Santander. However, Raiffeisen Bank is 1.65 times more volatile than Banco Santander Brasil. It trades about 0.03 of its potential returns per unit of risk. Banco Santander Brasil is currently generating about -0.21 per unit of risk. If you would invest 499.00 in Raiffeisen Bank International on September 25, 2024 and sell it today you would earn a total of 11.00 from holding Raiffeisen Bank International or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Raiffeisen Bank International vs. Banco Santander Brasil
Performance |
Timeline |
Raiffeisen Bank Inte |
Banco Santander Brasil |
Raiffeisen Bank and Banco Santander Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Raiffeisen Bank and Banco Santander
The main advantage of trading using opposite Raiffeisen Bank and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raiffeisen Bank 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.Raiffeisen Bank vs. Intercorp Financial Services | Raiffeisen Bank vs. Banco De Chile | Raiffeisen Bank vs. Bancolombia SA ADR | Raiffeisen Bank vs. Foreign Trade Bank |
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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