Correlation Between OneSavings Bank and PureTech Health
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and PureTech Health 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 PureTech Health 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 PureTech Health plc, you can compare the effects of market volatilities on OneSavings Bank and PureTech Health 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 PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and PureTech Health.
Diversification Opportunities for OneSavings Bank and PureTech Health
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between OneSavings and PureTech is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and PureTech Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PureTech Health 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 PureTech Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PureTech Health plc has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and PureTech Health go up and down completely randomly.
Pair Corralation between OneSavings Bank and PureTech Health
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 0.56 times more return on investment than PureTech Health. However, OneSavings Bank PLC is 1.79 times less risky than PureTech Health. It trades about 0.37 of its potential returns per unit of risk. PureTech Health plc is currently generating about 0.16 per unit of risk. If you would invest 35,380 in OneSavings Bank PLC on September 1, 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 | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OneSavings Bank PLC vs. PureTech Health plc
Performance |
| Timeline |
| OneSavings Bank PLC |
| PureTech Health plc |
OneSavings Bank and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and PureTech Health
The main advantage of trading using opposite OneSavings Bank and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, PureTech Health 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 PureTech Health will offset losses from the drop in PureTech Health'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 |
| PureTech Health vs. Home Depot | PureTech Health vs. Weiss Korea Opportunity | PureTech Health vs. River and Mercantile | PureTech Health vs. Sherborne Investors Guernsey |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |