Correlation Between Storebrand Global and Bank of Ireland
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By analyzing existing cross correlation between Storebrand Global Solutions and Bank of Ireland, you can compare the effects of market volatilities on Storebrand Global and Bank of Ireland 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 Storebrand Global with a short position of Bank of Ireland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Storebrand Global and Bank of Ireland.
Diversification Opportunities for Storebrand Global and Bank of Ireland
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Storebrand and Bank is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Storebrand Global Solutions and Bank of Ireland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Ireland and Storebrand Global 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 Storebrand Global Solutions are associated (or correlated) with Bank of Ireland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Ireland has no effect on the direction of Storebrand Global i.e., Storebrand Global and Bank of Ireland go up and down completely randomly.
Pair Corralation between Storebrand Global and Bank of Ireland
Assuming the 90 days trading horizon Storebrand Global Solutions is expected to generate 0.39 times more return on investment than Bank of Ireland. However, Storebrand Global Solutions is 2.57 times less risky than Bank of Ireland. It trades about -0.09 of its potential returns per unit of risk. Bank of Ireland is currently generating about -0.09 per unit of risk. If you would invest 237,235 in Storebrand Global Solutions on August 28, 2024 and sell it today you would lose (3,543) from holding Storebrand Global Solutions or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Storebrand Global Solutions vs. Bank of Ireland
Performance |
| Timeline |
| Storebrand Global |
| Bank of Ireland |
Storebrand Global and Bank of Ireland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Storebrand Global and Bank of Ireland
The main advantage of trading using opposite Storebrand Global and Bank of Ireland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Storebrand Global position performs unexpectedly, Bank of Ireland 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 Bank of Ireland will offset losses from the drop in Bank of Ireland's long position.| Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Dalata Hotel Group |
| Bank of Ireland vs. AIB Group PLC | Bank of Ireland vs. Kingspan Group plc | Bank of Ireland vs. Glanbia PLC | Bank of Ireland vs. Ryanair Holdings plc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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