Correlation Between OneSavings Bank and GlobalData PLC
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and GlobalData PLC 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 GlobalData PLC 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 GlobalData PLC, you can compare the effects of market volatilities on OneSavings Bank and GlobalData PLC 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 GlobalData PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and GlobalData PLC.
Diversification Opportunities for OneSavings Bank and GlobalData PLC
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between OneSavings and GlobalData is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and GlobalData PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlobalData PLC 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 GlobalData PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlobalData PLC has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and GlobalData PLC go up and down completely randomly.
Pair Corralation between OneSavings Bank and GlobalData PLC
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 0.99 times more return on investment than GlobalData PLC. However, OneSavings Bank PLC is 1.01 times less risky than GlobalData PLC. It trades about 0.2 of its potential returns per unit of risk. GlobalData PLC is currently generating about 0.0 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. GlobalData PLC
Performance |
| Timeline |
| OneSavings Bank PLC |
| GlobalData PLC |
OneSavings Bank and GlobalData PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and GlobalData PLC
The main advantage of trading using opposite OneSavings Bank and GlobalData PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, GlobalData PLC 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 GlobalData PLC will offset losses from the drop in GlobalData PLC'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 |
| GlobalData PLC vs. Neometals | GlobalData PLC vs. Coor Service Management | GlobalData PLC vs. Aeorema Communications Plc | GlobalData PLC vs. JLEN Environmental Assets |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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