Correlation Between GlobalData PLC and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both GlobalData PLC 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 GlobalData PLC and OneSavings Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalData PLC and OneSavings Bank PLC, you can compare the effects of market volatilities on GlobalData PLC 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 GlobalData PLC with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalData PLC and OneSavings Bank.
Diversification Opportunities for GlobalData PLC and OneSavings Bank
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GlobalData and OneSavings is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GlobalData PLC 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 GlobalData PLC 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 GlobalData PLC 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 GlobalData PLC i.e., GlobalData PLC and OneSavings Bank go up and down completely randomly.
Pair Corralation between GlobalData PLC and OneSavings Bank
Assuming the 90 days trading horizon GlobalData PLC is expected to generate 0.93 times more return on investment than OneSavings Bank. However, GlobalData PLC is 1.08 times less risky than OneSavings Bank. It trades about 0.07 of its potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.03 per unit of risk. If you would invest 14,639 in GlobalData PLC on September 2, 2024 and sell it today you would earn a total of 5,561 from holding GlobalData PLC or generate 37.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlobalData PLC vs. OneSavings Bank PLC
Performance |
| Timeline |
| GlobalData PLC |
| OneSavings Bank PLC |
GlobalData PLC and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalData PLC and OneSavings Bank
The main advantage of trading using opposite GlobalData PLC and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalData PLC 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.| GlobalData PLC vs. Catalyst Media Group | GlobalData PLC vs. CATLIN GROUP | GlobalData PLC vs. Tamburi Investment Partners | GlobalData PLC vs. Magnora ASA |
| OneSavings Bank vs. Samsung Electronics Co | OneSavings Bank vs. Samsung Electronics Co | OneSavings Bank vs. Toyota Motor Corp | OneSavings Bank vs. Reliance Industries Ltd |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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