Correlation Between OneSavings Bank and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on OneSavings Bank and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Batm Advanced.
Diversification Opportunities for OneSavings Bank and Batm Advanced
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OneSavings and Batm is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Batm Advanced go up and down completely randomly.
Pair Corralation between OneSavings Bank and Batm Advanced
Assuming the 90 days trading horizon OneSavings Bank is expected to generate 1.78 times less return on investment than Batm Advanced. But when comparing it to its historical volatility, OneSavings Bank PLC is 1.51 times less risky than Batm Advanced. It trades about 0.11 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Batm Advanced Communications on August 27, 2024 and sell it today you would earn a total of 130.00 from holding Batm Advanced Communications or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Batm Advanced Communications
Performance |
| Timeline |
| OneSavings Bank PLC |
| Batm Advanced Commun |
OneSavings Bank and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Batm Advanced
The main advantage of trading using opposite OneSavings Bank and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| OneSavings Bank vs. Batm Advanced Communications | OneSavings Bank vs. Fulcrum Metals PLC | OneSavings Bank vs. Zegona Communications Plc | OneSavings Bank vs. Gaztransport et Technigaz |
| Batm Advanced vs. Silvercorp Metals | Batm Advanced vs. GreenX Metals | Batm Advanced vs. Jacquet Metal Service | Batm Advanced vs. Cizzle Biotechnology Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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