Correlation Between AIB Group and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both AIB Group and Schweizerische Nationalbank 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 AIB Group and Schweizerische Nationalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIB Group PLC and Schweizerische Nationalbank, you can compare the effects of market volatilities on AIB Group and Schweizerische Nationalbank 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 AIB Group with a short position of Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIB Group and Schweizerische Nationalbank.
Diversification Opportunities for AIB Group and Schweizerische Nationalbank
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIB and Schweizerische is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding AIB Group PLC and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank and AIB Group 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 AIB Group PLC are associated (or correlated) with Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of AIB Group i.e., AIB Group and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between AIB Group and Schweizerische Nationalbank
If you would invest 430.00 in AIB Group PLC on August 25, 2024 and sell it today you would earn a total of 0.00 from holding AIB Group PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
AIB Group PLC vs. Schweizerische Nationalbank
Performance |
| Timeline |
| AIB Group PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Schweizerische Nationalbank |
AIB Group and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIB Group and Schweizerische Nationalbank
The main advantage of trading using opposite AIB Group and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIB Group position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank's long position.| AIB Group vs. Andover Bancorp | AIB Group vs. Banco del Bajo | AIB Group vs. Aozora Bank Ltd | AIB Group vs. Absa Group Limited |
| Schweizerische Nationalbank vs. Standard Bank Group | Schweizerische Nationalbank vs. Bank Central Asia | Schweizerische Nationalbank vs. PSB Holdings | Schweizerische Nationalbank vs. United Overseas Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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