Correlation Between Ally Financial and Cboe UK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ally Financial and Cboe UK Consumer, you can compare the effects of market volatilities on Ally Financial and Cboe UK 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 Ally Financial with a short position of Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ally Financial and Cboe UK.
Diversification Opportunities for Ally Financial and Cboe UK
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ally and Cboe is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ally Financial and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer and Ally Financial 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 Ally Financial are associated (or correlated) with Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of Ally Financial i.e., Ally Financial and Cboe UK go up and down completely randomly.
Pair Corralation between Ally Financial and Cboe UK
Assuming the 90 days trading horizon Ally Financial is expected to generate 2.16 times more return on investment than Cboe UK. However, Ally Financial is 2.16 times more volatile than Cboe UK Consumer. It trades about 0.09 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about 0.15 per unit of risk. If you would invest 3,558 in Ally Financial on September 20, 2024 and sell it today you would earn a total of 119.00 from holding Ally Financial or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ally Financial vs. Cboe UK Consumer
Performance |
| Timeline |
Ally Financial and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
Ally Financial
Pair trading matchups for Ally Financial
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with Ally Financial and Cboe UK
The main advantage of trading using opposite Ally Financial and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ally Financial position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| Ally Financial vs. Samsung Electronics Co | Ally Financial vs. Samsung Electronics Co | Ally Financial vs. Hyundai Motor | Ally Financial vs. Reliance Industries Ltd |
| Cboe UK vs. Cembra Money Bank | Cboe UK vs. Synchrony Financial | Cboe UK vs. OneSavings Bank PLC | Cboe UK vs. Ally Financial |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |