Correlation Between Baraboo Bancorporation and AIB Group
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation and AIB Group 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 Baraboo Bancorporation and AIB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and AIB Group PLC, you can compare the effects of market volatilities on Baraboo Bancorporation and AIB Group 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 Baraboo Bancorporation with a short position of AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and AIB Group.
Diversification Opportunities for Baraboo Bancorporation and AIB Group
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baraboo and AIB is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. and AIB Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group PLC and Baraboo Bancorporation 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 Baraboo Bancorporation are associated (or correlated) with AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group PLC has no effect on the direction of Baraboo Bancorporation i.e., Baraboo Bancorporation and AIB Group go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and AIB Group
If you would invest 310.00 in Baraboo Bancorporation on August 25, 2024 and sell it today you would earn a total of 13.00 from holding Baraboo Bancorporation or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Baraboo Bancorp. vs. AIB Group PLC
Performance |
| Timeline |
| Baraboo Bancorporation |
| AIB Group PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baraboo Bancorporation and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and AIB Group
The main advantage of trading using opposite Baraboo Bancorporation and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation position performs unexpectedly, AIB Group 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 AIB Group will offset losses from the drop in AIB Group's long position.| Baraboo Bancorporation vs. Standard Bank Group | Baraboo Bancorporation vs. Bank Central Asia | Baraboo Bancorporation vs. PSB Holdings | Baraboo Bancorporation vs. United Overseas Bank |
| AIB Group vs. Andover Bancorp | AIB Group vs. Banco del Bajo | AIB Group vs. Aozora Bank Ltd | AIB Group vs. Absa Group Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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