Correlation Between Alior Bank and Guild Esports
Can any of the company-specific risk be diversified away by investing in both Alior Bank and Guild Esports 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 Guild Esports 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 Guild Esports Plc, you can compare the effects of market volatilities on Alior Bank and Guild Esports 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 Guild Esports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alior Bank and Guild Esports.
Diversification Opportunities for Alior Bank and Guild Esports
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alior and Guild is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Alior Bank SA and Guild Esports Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guild Esports Plc 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 Guild Esports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guild Esports Plc has no effect on the direction of Alior Bank i.e., Alior Bank and Guild Esports go up and down completely randomly.
Pair Corralation between Alior Bank and Guild Esports
Assuming the 90 days trading horizon Alior Bank SA is expected to generate 1.08 times more return on investment than Guild Esports. However, Alior Bank is 1.08 times more volatile than Guild Esports Plc. It trades about 0.03 of its potential returns per unit of risk. Guild Esports Plc is currently generating about -0.03 per unit of risk. If you would invest 7,950 in Alior Bank SA on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Alior Bank SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alior Bank SA vs. Guild Esports Plc
Performance |
| Timeline |
| Alior Bank SA |
| Guild Esports Plc |
Alior Bank and Guild Esports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alior Bank and Guild Esports
The main advantage of trading using opposite Alior Bank and Guild Esports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alior Bank position performs unexpectedly, Guild Esports 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 Guild Esports will offset losses from the drop in Guild Esports' long position.| Alior Bank vs. Planet Fitness Cl | Alior Bank vs. Concurrent Technologies Plc | Alior Bank vs. Bellevue Healthcare Trust | Alior Bank vs. Spire Healthcare Group |
| Guild Esports vs. Catalyst Media Group | Guild Esports vs. CATLIN GROUP | Guild Esports vs. RTW Venture Fund | Guild Esports vs. SANTANDER UK 10 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance |