Correlation Between OneSavings Bank and METALL ZUG
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank and METALL ZUG 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 METALL ZUG 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 METALL ZUG AG, you can compare the effects of market volatilities on OneSavings Bank and METALL ZUG 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 METALL ZUG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and METALL ZUG.
Diversification Opportunities for OneSavings Bank and METALL ZUG
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OneSavings and METALL is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and METALL ZUG AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METALL ZUG AG 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 METALL ZUG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METALL ZUG AG has no effect on the direction of OneSavings Bank i.e., OneSavings Bank and METALL ZUG go up and down completely randomly.
Pair Corralation between OneSavings Bank and METALL ZUG
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 1.91 times more return on investment than METALL ZUG. However, OneSavings Bank is 1.91 times more volatile than METALL ZUG AG. It trades about 0.04 of its potential returns per unit of risk. METALL ZUG AG is currently generating about -0.09 per unit of risk. If you would invest 38,120 in OneSavings Bank PLC on September 25, 2024 and sell it today you would earn a total of 1,180 from holding OneSavings Bank PLC or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 90.63% |
Values | Daily Returns |
OneSavings Bank PLC vs. METALL ZUG AG
Performance |
Timeline |
OneSavings Bank PLC |
METALL ZUG AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OneSavings Bank and METALL ZUG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OneSavings Bank and METALL ZUG
The main advantage of trading using opposite OneSavings Bank and METALL ZUG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank position performs unexpectedly, METALL ZUG 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 METALL ZUG will offset losses from the drop in METALL ZUG's long position.OneSavings Bank vs. Aeorema Communications Plc | OneSavings Bank vs. Made Tech Group | OneSavings Bank vs. Universal Display Corp | OneSavings Bank vs. Gamma Communications PLC |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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