Correlation Between OneSavings Bank and Tatton Asset
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Tatton 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 Tatton 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 Tatton Asset Management, you can compare the effects of market volatilities on OneSavings Bank and Tatton 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 Tatton Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Tatton Asset.
Diversification Opportunities for OneSavings Bank and Tatton Asset
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between OneSavings and Tatton is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Tatton Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tatton Asset Management 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 Tatton Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tatton Asset Management has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Tatton Asset go up and down completely randomly.
Pair Corralation between OneSavings Bank and Tatton Asset
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to under-perform the Tatton Asset. In addition to that, OneSavings Bank is 1.4 times more volatile than Tatton Asset Management. It trades about 0.0 of its total potential returns per unit of risk. Tatton Asset Management is currently generating about 0.06 per unit of volatility. If you would invest 60,056 in Tatton Asset Management on September 13, 2024 and sell it today you would earn a total of 8,944 from holding Tatton Asset Management or generate 14.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Tatton Asset Management
Performance |
| Timeline |
| OneSavings Bank PLC |
| Tatton Asset Management |
OneSavings Bank and Tatton Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Tatton Asset
The main advantage of trading using opposite OneSavings Bank and Tatton Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Tatton 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 Tatton Asset will offset losses from the drop in Tatton Asset's long position.| OneSavings Bank vs. Toyota Motor Corp | OneSavings Bank vs. SoftBank Group Corp | OneSavings Bank vs. Fannie Mae | OneSavings Bank vs. Panasonic Corp |
| Tatton Asset vs. OneSavings Bank PLC | Tatton Asset vs. Blackstone Loan Financing | Tatton Asset vs. Cincinnati Financial Corp | Tatton Asset vs. Royal Bank of |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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