Correlation Between MT Bank and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both MT Bank 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 MT Bank and OneSavings Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT Bank Corp and OneSavings Bank PLC, you can compare the effects of market volatilities on MT Bank 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 MT Bank with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT Bank and OneSavings Bank.
Diversification Opportunities for MT Bank and OneSavings Bank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 0JW2 and OneSavings is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding MT Bank Corp 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 MT 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 MT Bank Corp 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 MT Bank i.e., MT Bank and OneSavings Bank go up and down completely randomly.
Pair Corralation between MT Bank and OneSavings Bank
Assuming the 90 days trading horizon MT Bank Corp is expected to generate 0.7 times more return on investment than OneSavings Bank. However, MT Bank Corp is 1.42 times less risky than OneSavings Bank. It trades about 0.05 of its potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.0 per unit of risk. If you would invest 13,407 in MT Bank Corp on November 27, 2024 and sell it today you would earn a total of 6,006 from holding MT Bank Corp or generate 44.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.77% |
| Values | Daily Returns |
MT Bank Corp vs. OneSavings Bank PLC
Performance |
| Timeline |
| MT Bank Corp |
| OneSavings Bank PLC |
MT Bank and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT Bank and OneSavings Bank
The main advantage of trading using opposite MT Bank and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT Bank 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.| MT Bank vs. Austevoll Seafood ASA | MT Bank vs. Symphony Environmental Technologies | MT Bank vs. Monster Beverage Corp | MT Bank vs. Hilton Food Group |
| OneSavings Bank vs. Ebro Foods | OneSavings Bank vs. BW Offshore | OneSavings Bank vs. Hilton Food Group | OneSavings Bank vs. Games Workshop Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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