Correlation Between Alior Bank and St Galler
Can any of the company-specific risk be diversified away by investing in both Alior Bank and St Galler 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 Alior Bank and St Galler into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alior Bank SA and St Galler Kantonalbank, you can compare the effects of market volatilities on Alior Bank and St Galler 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 Alior Bank with a short position of St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alior Bank and St Galler.
Diversification Opportunities for Alior Bank and St Galler
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alior and 0QQZ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alior Bank SA and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank and Alior 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 Alior Bank SA are associated (or correlated) with St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Alior Bank i.e., Alior Bank and St Galler go up and down completely randomly.
Pair Corralation between Alior Bank and St Galler
Assuming the 90 days trading horizon Alior Bank SA is expected to generate 0.01 times more return on investment than St Galler. However, Alior Bank SA is 199.44 times less risky than St Galler. It trades about 0.03 of its potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.03 per unit of risk. If you would invest 7,946 in Alior Bank SA on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Alior Bank SA or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Alior Bank SA vs. St Galler Kantonalbank
Performance |
| Timeline |
| Alior Bank SA |
| St Galler Kantonalbank |
Alior Bank and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alior Bank and St Galler
The main advantage of trading using opposite Alior Bank and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alior Bank position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler's long position.| Alior Bank vs. Toyota Motor Corp | Alior Bank vs. OTP Bank Nyrt | Alior Bank vs. Cognizant Technology Solutions | Alior Bank vs. Lendinvest PLC |
| St Galler vs. Lendinvest PLC | St Galler vs. Neometals | St Galler vs. Albion Technology General | St Galler vs. Jupiter Fund Management |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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