Correlation Between Banco Santander and Comerica
Can any of the company-specific risk be diversified away by investing in both Banco Santander and Comerica 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 Comerica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Santander Brasil and Comerica, you can compare the effects of market volatilities on Banco Santander and Comerica 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 Comerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Santander and Comerica.
Diversification Opportunities for Banco Santander and Comerica
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Banco and Comerica is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Banco Santander Brasil and Comerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comerica 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 Brasil are associated (or correlated) with Comerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comerica has no effect on the direction of Banco Santander i.e., Banco Santander and Comerica go up and down completely randomly.
Pair Corralation between Banco Santander and Comerica
Given the investment horizon of 90 days Banco Santander Brasil is expected to generate 1.14 times more return on investment than Comerica. However, Banco Santander is 1.14 times more volatile than Comerica. It trades about 0.04 of its potential returns per unit of risk. Comerica is currently generating about -0.18 per unit of risk. If you would invest 548.00 in Banco Santander Brasil on February 1, 2024 and sell it today you would earn a total of 8.00 from holding Banco Santander Brasil or generate 1.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Banco Santander Brasil vs. Comerica
Performance |
Timeline |
Banco Santander Brasil |
Comerica |
Banco Santander and Comerica Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Banco Santander and Comerica
The main advantage of trading using opposite Banco Santander and Comerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Santander position performs unexpectedly, Comerica 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 Comerica will offset losses from the drop in Comerica's long position.Banco Santander vs. HMN Financial | Banco Santander vs. Community West Bancshares | Banco Santander vs. First Financial Northwest | Banco Santander vs. Ponce Financial Group |
Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |