Correlation Between Standard Bank and Coeur DAlene
Can any of the company-specific risk be diversified away by investing in both Standard Bank and Coeur DAlene 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 Standard Bank and Coeur DAlene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Bank Group and Coeur dAlene Bancorp, you can compare the effects of market volatilities on Standard Bank and Coeur DAlene 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 Standard Bank with a short position of Coeur DAlene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Bank and Coeur DAlene.
Diversification Opportunities for Standard Bank and Coeur DAlene
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Standard and Coeur is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Standard Bank Group and Coeur dAlene Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur dAlene Bancorp and Standard 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 Standard Bank Group are associated (or correlated) with Coeur DAlene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur dAlene Bancorp has no effect on the direction of Standard Bank i.e., Standard Bank and Coeur DAlene go up and down completely randomly.
Pair Corralation between Standard Bank and Coeur DAlene
Assuming the 90 days horizon Standard Bank Group is expected to under-perform the Coeur DAlene. But the pink sheet apears to be less risky and, when comparing its historical volatility, Standard Bank Group is 1.45 times less risky than Coeur DAlene. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Coeur dAlene Bancorp is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 1,410 in Coeur dAlene Bancorp on August 29, 2024 and sell it today you would earn a total of 265.00 from holding Coeur dAlene Bancorp or generate 18.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Bank Group vs. Coeur dAlene Bancorp
Performance |
| Timeline |
| Standard Bank Group |
| Coeur dAlene Bancorp |
Standard Bank and Coeur DAlene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Bank and Coeur DAlene
The main advantage of trading using opposite Standard Bank and Coeur DAlene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Bank position performs unexpectedly, Coeur DAlene 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 Coeur DAlene will offset losses from the drop in Coeur DAlene's long position.| Standard Bank vs. Bank Central Asia | Standard Bank vs. Nedbank Group | Standard Bank vs. Kasikornbank Public Co | Standard Bank vs. KBC Groep NV |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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