Correlation Between Bank of Ireland and Storebrand Global
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By analyzing existing cross correlation between Bank of Ireland and Storebrand Global Solutions, you can compare the effects of market volatilities on Bank of Ireland and Storebrand Global 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 Bank of Ireland with a short position of Storebrand Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Ireland and Storebrand Global.
Diversification Opportunities for Bank of Ireland and Storebrand Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Storebrand is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Ireland and Storebrand Global Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storebrand Global and Bank of Ireland 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 Bank of Ireland are associated (or correlated) with Storebrand Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storebrand Global has no effect on the direction of Bank of Ireland i.e., Bank of Ireland and Storebrand Global go up and down completely randomly.
Pair Corralation between Bank of Ireland and Storebrand Global
Assuming the 90 days trading horizon Bank of Ireland is expected to under-perform the Storebrand Global. In addition to that, Bank of Ireland is 2.57 times more volatile than Storebrand Global Solutions. It trades about -0.09 of its total potential returns per unit of risk. Storebrand Global Solutions is currently generating about -0.09 per unit of volatility. If you would invest 237,235 in Storebrand Global Solutions on August 28, 2024 and sell it today you would lose (3,543) from holding Storebrand Global Solutions or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Bank of Ireland vs. Storebrand Global Solutions
Performance |
| Timeline |
| Bank of Ireland |
| Storebrand Global |
Bank of Ireland and Storebrand Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Ireland and Storebrand Global
The main advantage of trading using opposite Bank of Ireland and Storebrand Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Ireland position performs unexpectedly, Storebrand Global 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 Storebrand Global will offset losses from the drop in Storebrand Global's long position.| Bank of Ireland vs. AIB Group PLC | Bank of Ireland vs. Kingspan Group plc | Bank of Ireland vs. Glanbia PLC | Bank of Ireland vs. Ryanair Holdings plc |
| Storebrand Global vs. Franklin Floating Rate | Storebrand Global vs. Dalata Hotel Group | Storebrand Global vs. Uniphar Group PLC | Storebrand Global vs. Origin Enterprises Plc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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