Correlation Between Celebrus Technologies and Bank of Ireland
Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies and Bank of Ireland 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 Celebrus Technologies and Bank of Ireland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebrus Technologies plc and Bank of Ireland, you can compare the effects of market volatilities on Celebrus Technologies and Bank of Ireland 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 Celebrus Technologies with a short position of Bank of Ireland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Bank of Ireland.
Diversification Opportunities for Celebrus Technologies and Bank of Ireland
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Celebrus and Bank is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc and Bank of Ireland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Ireland and Celebrus Technologies 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 Celebrus Technologies plc are associated (or correlated) with Bank of Ireland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Ireland has no effect on the direction of Celebrus Technologies i.e., Celebrus Technologies and Bank of Ireland go up and down completely randomly.
Pair Corralation between Celebrus Technologies and Bank of Ireland
Assuming the 90 days trading horizon Celebrus Technologies plc is expected to under-perform the Bank of Ireland. In addition to that, Celebrus Technologies is 1.0 times more volatile than Bank of Ireland. It trades about -0.1 of its total potential returns per unit of risk. Bank of Ireland is currently generating about 0.05 per unit of volatility. If you would invest 859.00 in Bank of Ireland on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Bank of Ireland or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebrus Technologies plc vs. Bank of Ireland
Performance |
| Timeline |
| Celebrus Technologies plc |
| Bank of Ireland |
Celebrus Technologies and Bank of Ireland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebrus Technologies and Bank of Ireland
The main advantage of trading using opposite Celebrus Technologies and Bank of Ireland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies position performs unexpectedly, Bank of Ireland 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 Bank of Ireland will offset losses from the drop in Bank of Ireland's long position.| Celebrus Technologies vs. GB Group plc | Celebrus Technologies vs. Pensionbee Group PLC | Celebrus Technologies vs. Dotdigital Group Plc | Celebrus Technologies vs. Tracsis Plc |
| Bank of Ireland vs. Sunny Optical Technology | Bank of Ireland vs. Air Products Chemicals | Bank of Ireland vs. Wizz Air Holdings | Bank of Ireland vs. Celebrus Technologies 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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