Correlation Between Martin Marietta and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both Martin Marietta 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 Martin Marietta and OneSavings Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and OneSavings Bank PLC, you can compare the effects of market volatilities on Martin Marietta 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 Martin Marietta with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and OneSavings Bank.
Diversification Opportunities for Martin Marietta and OneSavings Bank
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Martin and OneSavings is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials 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 Martin Marietta 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 Martin Marietta Materials 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 Martin Marietta i.e., Martin Marietta and OneSavings Bank go up and down completely randomly.
Pair Corralation between Martin Marietta and OneSavings Bank
Assuming the 90 days trading horizon Martin Marietta Materials is expected to under-perform the OneSavings Bank. But the stock apears to be less risky and, when comparing its historical volatility, Martin Marietta Materials is 1.21 times less risky than OneSavings Bank. The stock trades about -0.4 of its potential returns per unit of risk. The OneSavings Bank PLC is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 39,000 in OneSavings Bank PLC on November 28, 2024 and sell it today you would earn a total of 3,860 from holding OneSavings Bank PLC or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Martin Marietta Materials vs. OneSavings Bank PLC
Performance |
| Timeline |
| Martin Marietta Materials |
| OneSavings Bank PLC |
Martin Marietta and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and OneSavings Bank
The main advantage of trading using opposite Martin Marietta and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta 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.| Martin Marietta vs. Amedeo Air Four | Martin Marietta vs. GreenX Metals | Martin Marietta vs. Endeavour Mining Corp | Martin Marietta vs. Empire Metals Limited |
| OneSavings Bank vs. Smithson Investment Trust | OneSavings Bank vs. Geely Automobile Holdings | OneSavings Bank vs. Scottish American Investment | OneSavings Bank vs. Cellnex Telecom SA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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