Correlation Between OneSavings Bank and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Endeavour Mining 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 Endeavour Mining 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 Endeavour Mining Corp, you can compare the effects of market volatilities on OneSavings Bank and Endeavour Mining 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 Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Endeavour Mining.
Diversification Opportunities for OneSavings Bank and Endeavour Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OneSavings and Endeavour is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Endeavour Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining Corp 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 Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining Corp has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Endeavour Mining go up and down completely randomly.
Pair Corralation between OneSavings Bank and Endeavour Mining
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 0.8 times more return on investment than Endeavour Mining. However, OneSavings Bank PLC is 1.25 times less risky than Endeavour Mining. It trades about 0.05 of its potential returns per unit of risk. Endeavour Mining Corp is currently generating about -0.29 per unit of risk. If you would invest 37,280 in OneSavings Bank PLC on August 26, 2024 and sell it today you would earn a total of 600.00 from holding OneSavings Bank PLC or generate 1.61% 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. Endeavour Mining Corp
Performance |
| Timeline |
| OneSavings Bank PLC |
| Endeavour Mining Corp |
OneSavings Bank and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Endeavour Mining
The main advantage of trading using opposite OneSavings Bank and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Endeavour Mining 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 Endeavour Mining will offset losses from the drop in Endeavour Mining's long position.| OneSavings Bank vs. bet at home AG | OneSavings Bank vs. BioNTech SE | OneSavings Bank vs. L3Harris Technologies | OneSavings Bank vs. Made Tech Group |
| Endeavour Mining vs. Panther Metals PLC | Endeavour Mining vs. Neometals | Endeavour Mining vs. Metals Exploration Plc | Endeavour Mining vs. One Media iP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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