Correlation Between OneSavings Bank and Zegona Communications
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and Zegona Communications 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 Zegona Communications 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 Zegona Communications Plc, you can compare the effects of market volatilities on OneSavings Bank and Zegona Communications 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 Zegona Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Zegona Communications.
Diversification Opportunities for OneSavings Bank and Zegona Communications
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OneSavings and Zegona is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Zegona Communications Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zegona Communications 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 Zegona Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zegona Communications Plc has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and Zegona Communications go up and down completely randomly.
Pair Corralation between OneSavings Bank and Zegona Communications
Assuming the 90 days trading horizon OneSavings Bank is expected to generate 1.02 times less return on investment than Zegona Communications. But when comparing it to its historical volatility, OneSavings Bank PLC is 1.62 times less risky than Zegona Communications. It trades about 0.17 of its potential returns per unit of risk. Zegona Communications Plc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 33,000 in Zegona Communications Plc on August 30, 2024 and sell it today you would earn a total of 2,000 from holding Zegona Communications Plc or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Zegona Communications Plc
Performance |
| Timeline |
| OneSavings Bank PLC |
| Zegona Communications Plc |
OneSavings Bank and Zegona Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Zegona Communications
The main advantage of trading using opposite OneSavings Bank and Zegona Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, Zegona Communications 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 Zegona Communications will offset losses from the drop in Zegona Communications' long position.| OneSavings Bank vs. Chocoladefabriken Lindt Spruengli | OneSavings Bank vs. National Atomic Co | OneSavings Bank vs. OTP Bank Nyrt | OneSavings Bank vs. Samsung Electronics Co |
| Zegona Communications vs. CVR Energy | Zegona Communications vs. Viridian Therapeutics | Zegona Communications vs. Dollar Tree | Zegona Communications vs. News Corp Cl |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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