Correlation Between Alior Bank and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both Alior 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 Alior 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 Alior Bank SA and OneSavings Bank PLC, you can compare the effects of market volatilities on Alior 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 Alior Bank with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alior Bank and OneSavings Bank.
Diversification Opportunities for Alior Bank and OneSavings Bank
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alior and OneSavings is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Alior Bank SA 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 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 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 Alior Bank i.e., Alior Bank and OneSavings Bank go up and down completely randomly.
Pair Corralation between Alior Bank and OneSavings Bank
Assuming the 90 days trading horizon Alior Bank is expected to generate 6.4 times less return on investment than OneSavings Bank. In addition to that, Alior Bank is 2.85 times more volatile than OneSavings Bank PLC. It trades about 0.02 of its total potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.38 per unit of volatility. If you would invest 35,380 in OneSavings Bank PLC on September 2, 2024 and sell it today you would earn a total of 4,860 from holding OneSavings Bank PLC or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alior Bank SA vs. OneSavings Bank PLC
Performance |
| Timeline |
| Alior Bank SA |
| OneSavings Bank PLC |
Alior Bank and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alior Bank and OneSavings Bank
The main advantage of trading using opposite Alior Bank and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alior 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.| Alior Bank vs. Toyota Motor Corp | Alior Bank vs. SoftBank Group Corp | Alior Bank vs. OTP Bank Nyrt | Alior Bank vs. Las Vegas Sands |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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