Correlation Between OneSavings Bank and Monster Beverage
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Monster Beverage 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 OneSavings Bank and Monster Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSavings Bank PLC and Monster Beverage Corp, you can compare the effects of market volatilities on OneSavings Bank and Monster Beverage 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 OneSavings Bank with a short position of Monster Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Monster Beverage.
Diversification Opportunities for OneSavings Bank and Monster Beverage
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OneSavings and Monster is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Monster Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monster Beverage Corp and OneSavings Bank 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 OneSavings Bank PLC are associated (or correlated) with Monster Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monster Beverage Corp has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Monster Beverage go up and down completely randomly.
Pair Corralation between OneSavings Bank and Monster Beverage
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 2.32 times more return on investment than Monster Beverage. However, OneSavings Bank is 2.32 times more volatile than Monster Beverage Corp. It trades about 0.21 of its potential returns per unit of risk. Monster Beverage Corp is currently generating about 0.44 per unit of risk. If you would invest 40,143 in OneSavings Bank PLC on January 3, 2025 and sell it today you would earn a total of 3,537 from holding OneSavings Bank PLC or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Monster Beverage Corp
Performance |
| Timeline |
| OneSavings Bank PLC |
| Monster Beverage Corp |
OneSavings Bank and Monster Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Monster Beverage
The main advantage of trading using opposite OneSavings Bank and Monster Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Monster Beverage 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 Monster Beverage will offset losses from the drop in Monster Beverage's long position.| OneSavings Bank vs. Micron Technology | OneSavings Bank vs. DXC Technology Co | OneSavings Bank vs. Cognizant Technology Solutions | OneSavings Bank vs. Bytes Technology |
| Monster Beverage vs. Cairo Communication SpA | Monster Beverage vs. Waste Management | Monster Beverage vs. Mobile Tornado Group | Monster Beverage vs. Dairy Farm International |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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