Correlation Between OneSavings Bank and Brunner Investment
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Brunner Investment 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 Brunner Investment 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 Brunner Investment Trust, you can compare the effects of market volatilities on OneSavings Bank and Brunner Investment 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 Brunner Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Brunner Investment.
Diversification Opportunities for OneSavings Bank and Brunner Investment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OneSavings and Brunner is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Brunner Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunner Investment Trust 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 Brunner Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunner Investment Trust has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Brunner Investment go up and down completely randomly.
Pair Corralation between OneSavings Bank and Brunner Investment
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to under-perform the Brunner Investment. In addition to that, OneSavings Bank is 2.74 times more volatile than Brunner Investment Trust. It trades about 0.0 of its total potential returns per unit of risk. Brunner Investment Trust is currently generating about 0.06 per unit of volatility. If you would invest 103,979 in Brunner Investment Trust on November 27, 2024 and sell it today you would earn a total of 33,021 from holding Brunner Investment Trust or generate 31.76% 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. Brunner Investment Trust
Performance |
| Timeline |
| OneSavings Bank PLC |
| Brunner Investment Trust |
OneSavings Bank and Brunner Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Brunner Investment
The main advantage of trading using opposite OneSavings Bank and Brunner Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Brunner Investment 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 Brunner Investment will offset losses from the drop in Brunner Investment's long position.| OneSavings Bank vs. Ebro Foods | OneSavings Bank vs. BW Offshore | OneSavings Bank vs. Hilton Food Group | OneSavings Bank vs. Games Workshop Group |
| Brunner Investment vs. Artemisome I | Brunner Investment vs. Bankers Investment Trust | Brunner Investment vs. Sanlam Global Artificial | Brunner Investment vs. Invesco Pan European |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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