Correlation Between Compal Electronics and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both Compal Electronics 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 Compal Electronics and OneSavings Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compal Electronics GDR and OneSavings Bank PLC, you can compare the effects of market volatilities on Compal Electronics 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 Compal Electronics with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compal Electronics and OneSavings Bank.
Diversification Opportunities for Compal Electronics and OneSavings Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Compal and OneSavings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compal Electronics GDR 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 Compal Electronics 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 Compal Electronics GDR 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 Compal Electronics i.e., Compal Electronics and OneSavings Bank go up and down completely randomly.
Pair Corralation between Compal Electronics and OneSavings Bank
If you would invest 310.00 in Compal Electronics GDR on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Compal Electronics GDR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compal Electronics GDR vs. OneSavings Bank PLC
Performance |
| Timeline |
| Compal Electronics GDR |
| OneSavings Bank PLC |
Compal Electronics and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compal Electronics and OneSavings Bank
The main advantage of trading using opposite Compal Electronics and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compal Electronics 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.| Compal Electronics vs. Samsung Electronics Co | Compal Electronics vs. Samsung Electronics Co | Compal Electronics vs. Hyundai Motor | Compal Electronics vs. Toyota Motor Corp |
| OneSavings Bank vs. Check Point Software | OneSavings Bank vs. Centaur Media | OneSavings Bank vs. Alfa Financial Software | OneSavings Bank vs. Compal Electronics GDR |
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 CEOs Directory module to screen CEOs from public companies around the world.
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