Correlation Between SVB Financial and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both SVB Financial and Lloyds Banking 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 SVB Financial and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and Lloyds Banking Group, you can compare the effects of market volatilities on SVB Financial and Lloyds Banking 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 SVB Financial with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Lloyds Banking.
Diversification Opportunities for SVB Financial and Lloyds Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Lloyds is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and SVB Financial 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 SVB Financial Group are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of SVB Financial i.e., SVB Financial and Lloyds Banking go up and down completely randomly.
Pair Corralation between SVB Financial and Lloyds Banking
Assuming the 90 days trading horizon SVB Financial Group is expected to under-perform the Lloyds Banking. In addition to that, SVB Financial is 1.36 times more volatile than Lloyds Banking Group. It trades about -0.07 of its total potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.05 per unit of volatility. If you would invest 1,205 in Lloyds Banking Group on November 19, 2024 and sell it today you would earn a total of 619.00 from holding Lloyds Banking Group or generate 51.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
SVB Financial Group vs. Lloyds Banking Group
Performance |
| Timeline |
| SVB Financial Group |
| Lloyds Banking Group |
SVB Financial and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Lloyds Banking
The main advantage of trading using opposite SVB Financial and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| SVB Financial vs. HDFC Bank Limited | SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Deutsche Bank Aktiengesellschaft |
| Lloyds Banking vs. Seagate Technology Holdings | Lloyds Banking vs. Fresenius Medical Care | Lloyds Banking vs. Telecomunicaes Brasileiras SA | Lloyds Banking vs. Cognizant Technology Solutions |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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