Correlation Between OneSavings Bank and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on OneSavings Bank and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Liontrust Asset.
Diversification Opportunities for OneSavings Bank and Liontrust Asset
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OneSavings and Liontrust is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Liontrust Asset go up and down completely randomly.
Pair Corralation between OneSavings Bank and Liontrust Asset
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 1.31 times more return on investment than Liontrust Asset. However, OneSavings Bank is 1.31 times more volatile than Liontrust Asset Management. It trades about 0.05 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about 0.05 per unit of risk. If you would invest 38,620 in OneSavings Bank PLC on September 25, 2024 and sell it today you would earn a total of 680.00 from holding OneSavings Bank PLC or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Liontrust Asset Management
Performance |
| Timeline |
| OneSavings Bank PLC |
| Liontrust Asset Mana |
OneSavings Bank and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Liontrust Asset
The main advantage of trading using opposite OneSavings Bank and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| OneSavings Bank vs. Aeorema Communications Plc | OneSavings Bank vs. Made Tech Group | OneSavings Bank vs. Universal Display Corp | OneSavings Bank vs. Gamma Communications PLC |
| Liontrust Asset vs. Cembra Money Bank | Liontrust Asset vs. CleanTech Lithium plc | Liontrust Asset vs. AfriTin Mining | Liontrust Asset vs. OneSavings Bank PLC |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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