Correlation Between OneSavings Bank and Alior Bank
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Alior 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 OneSavings Bank and Alior Bank 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 Alior Bank SA, you can compare the effects of market volatilities on OneSavings Bank and Alior 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 OneSavings Bank with a short position of Alior Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Alior Bank.
Diversification Opportunities for OneSavings Bank and Alior Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OneSavings and Alior is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Alior Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alior Bank SA 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 Alior Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alior Bank SA has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Alior Bank go up and down completely randomly.
Pair Corralation between OneSavings Bank and Alior Bank
If you would invest 36,020 in OneSavings Bank PLC on August 30, 2024 and sell it today you would earn a total of 2,300 from holding OneSavings Bank PLC or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Alior Bank SA
Performance |
| Timeline |
| OneSavings Bank PLC |
| Alior Bank SA |
OneSavings Bank and Alior Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Alior Bank
The main advantage of trading using opposite OneSavings Bank and Alior Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Alior 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 Alior Bank will offset losses from the drop in Alior Bank's long position.| OneSavings Bank vs. Chocoladefabriken Lindt Spruengli | OneSavings Bank vs. National Atomic Co | OneSavings Bank vs. OTP Bank Nyrt | OneSavings Bank vs. Samsung Electronics Co |
| Alior Bank vs. Toyota Motor Corp | Alior Bank vs. OTP Bank Nyrt | Alior Bank vs. Cognizant Technology Solutions | Alior Bank vs. Lendinvest 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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