Correlation Between OneSavings Bank and International Consolidated
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and International Consolidated 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 International Consolidated 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 International Consolidated Airlines, you can compare the effects of market volatilities on OneSavings Bank and International Consolidated 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 International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and International Consolidated.
Diversification Opportunities for OneSavings Bank and International Consolidated
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between OneSavings and International is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated 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 International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and International Consolidated go up and down completely randomly.
Pair Corralation between OneSavings Bank and International Consolidated
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to under-perform the International Consolidated. In addition to that, OneSavings Bank is 1.41 times more volatile than International Consolidated Airlines. It trades about -0.03 of its total potential returns per unit of risk. International Consolidated Airlines is currently generating about 0.19 per unit of volatility. If you would invest 17,238 in International Consolidated Airlines on September 1, 2024 and sell it today you would earn a total of 8,842 from holding International Consolidated Airlines or generate 51.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
OneSavings Bank PLC vs. International Consolidated Air
Performance |
| Timeline |
| OneSavings Bank PLC |
| International Consolidated |
OneSavings Bank and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and International Consolidated
The main advantage of trading using opposite OneSavings Bank and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated'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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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