Correlation Between Palantir Technologies and AIB Group
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies and AIB Group 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 Palantir Technologies and AIB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies Class and AIB Group plc, you can compare the effects of market volatilities on Palantir Technologies and AIB Group 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 Palantir Technologies with a short position of AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and AIB Group.
Diversification Opportunities for Palantir Technologies and AIB Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Palantir and AIB is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and AIB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group plc and Palantir Technologies 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 Palantir Technologies Class are associated (or correlated) with AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group plc has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and AIB Group go up and down completely randomly.
Pair Corralation between Palantir Technologies and AIB Group
Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 2.55 times more return on investment than AIB Group. However, Palantir Technologies is 2.55 times more volatile than AIB Group plc. It trades about 0.42 of its potential returns per unit of risk. AIB Group plc is currently generating about 0.01 per unit of risk. If you would invest 4,141 in Palantir Technologies Class on September 3, 2024 and sell it today you would earn a total of 2,567 from holding Palantir Technologies Class or generate 61.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palantir Technologies Class vs. AIB Group plc
Performance |
| Timeline |
| Palantir Technologies |
| AIB Group plc |
Palantir Technologies and AIB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and AIB Group
The main advantage of trading using opposite Palantir Technologies and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies position performs unexpectedly, AIB Group 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 AIB Group will offset losses from the drop in AIB Group's long position.| Palantir Technologies vs. Palo Alto Networks | Palantir Technologies vs. Adobe Systems Incorporated | Palantir Technologies vs. Crowdstrike Holdings | Palantir Technologies vs. Block Inc |
| AIB Group vs. Plumas Bancorp | AIB Group vs. Merchants Bancorp | AIB Group vs. BancFirst | AIB Group vs. BBVA Banco Frances |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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