Correlation Between OneSavings Bank and Halfords Group
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Halfords Group 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 Halfords Group 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 Halfords Group PLC, you can compare the effects of market volatilities on OneSavings Bank and Halfords Group 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 Halfords Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Halfords Group.
Diversification Opportunities for OneSavings Bank and Halfords Group
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OneSavings and Halfords is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Halfords Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halfords Group 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 Halfords Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halfords Group PLC has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Halfords Group go up and down completely randomly.
Pair Corralation between OneSavings Bank and Halfords Group
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 0.37 times more return on investment than Halfords Group. However, OneSavings Bank PLC is 2.68 times less risky than Halfords Group. It trades about 0.38 of its potential returns per unit of risk. Halfords Group PLC is currently generating about -0.1 per unit of risk. If you would invest 35,380 in OneSavings Bank PLC on September 2, 2024 and sell it today you would earn a total of 4,860 from holding OneSavings Bank PLC or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Halfords Group PLC
Performance |
| Timeline |
| OneSavings Bank PLC |
| Halfords Group PLC |
OneSavings Bank and Halfords Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Halfords Group
The main advantage of trading using opposite OneSavings Bank and Halfords Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Halfords Group 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 Halfords Group will offset losses from the drop in Halfords Group's long position.| OneSavings Bank vs. Atalaya Mining | OneSavings Bank vs. Endeavour Mining Corp | OneSavings Bank vs. iShares Physical Silver | OneSavings Bank vs. Eastinco Mining Exploration |
| Halfords Group vs. GreenX Metals | Halfords Group vs. Jacquet Metal Service | Halfords Group vs. Cornish Metals | Halfords Group vs. Golden Metal Resources |
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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