Correlation Between OneSavings Bank and Erste Group
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Erste Group 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 Erste Group 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 Erste Group Bank, you can compare the effects of market volatilities on OneSavings Bank and Erste Group 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 Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Erste Group.
Diversification Opportunities for OneSavings Bank and Erste Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OneSavings and Erste is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank 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 Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Erste Group go up and down completely randomly.
Pair Corralation between OneSavings Bank and Erste Group
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 1.36 times more return on investment than Erste Group. However, OneSavings Bank is 1.36 times more volatile than Erste Group Bank. It trades about 0.2 of its potential returns per unit of risk. Erste Group Bank is currently generating about 0.15 per unit of risk. If you would invest 36,720 in OneSavings Bank PLC on August 31, 2024 and sell it today you would earn a total of 3,000 from holding OneSavings Bank PLC or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Erste Group Bank
Performance |
| Timeline |
| OneSavings Bank PLC |
| Erste Group Bank |
OneSavings Bank and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Erste Group
The main advantage of trading using opposite OneSavings Bank and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| OneSavings Bank vs. Abingdon Health Plc | OneSavings Bank vs. Spirent Communications plc | OneSavings Bank vs. Zoom Video Communications | OneSavings Bank vs. Team Internet Group |
| Erste Group vs. TechnipFMC PLC | Erste Group vs. Microchip Technology | Erste Group vs. Cornish Metals | Erste Group vs. Roper Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |