Correlation Between Komercni Banka and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both Komercni Banka and OneSavings Bank 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 Komercni Banka and OneSavings Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and OneSavings Bank PLC, you can compare the effects of market volatilities on Komercni Banka and OneSavings Bank 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 Komercni Banka with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and OneSavings Bank.
Diversification Opportunities for Komercni Banka and OneSavings Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and OneSavings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and OneSavings Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSavings Bank PLC and Komercni Banka 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 Komercni Banka are associated (or correlated) with OneSavings Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSavings Bank PLC has no effect on the direction of Komercni Banka i.e., Komercni Banka and OneSavings Bank go up and down completely randomly.
Pair Corralation between Komercni Banka and OneSavings Bank
Assuming the 90 days trading horizon Komercni Banka is expected to generate 105.83 times less return on investment than OneSavings Bank. But when comparing it to its historical volatility, Komercni Banka is 254.11 times less risky than OneSavings Bank. It trades about 0.06 of its potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 37,239 in OneSavings Bank PLC on September 2, 2024 and sell it today you would earn a total of 3,001 from holding OneSavings Bank PLC or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komercni Banka vs. OneSavings Bank PLC
Performance |
| Timeline |
| Komercni Banka |
| OneSavings Bank PLC |
Komercni Banka and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and OneSavings Bank
The main advantage of trading using opposite Komercni Banka and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka position performs unexpectedly, OneSavings Bank 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 OneSavings Bank will offset losses from the drop in OneSavings Bank's long position.| Komercni Banka vs. Delta Air Lines | Komercni Banka vs. Wizz Air Holdings | Komercni Banka vs. The Mercantile Investment | Komercni Banka vs. Amedeo Air Four |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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