Correlation Between ALIOR BANK and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both ALIOR BANK and OAKTRSPECLENDNEW 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 ALIOR BANK and OAKTRSPECLENDNEW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALIOR BANK and OAKTRSPECLENDNEW, you can compare the effects of market volatilities on ALIOR BANK and OAKTRSPECLENDNEW 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 ALIOR BANK with a short position of OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALIOR BANK and OAKTRSPECLENDNEW.
Diversification Opportunities for ALIOR BANK and OAKTRSPECLENDNEW
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALIOR and OAKTRSPECLENDNEW is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding ALIOR BANK and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW and ALIOR 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 ALIOR BANK are associated (or correlated) with OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of ALIOR BANK i.e., ALIOR BANK and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between ALIOR BANK and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon ALIOR BANK is expected to generate 2.23 times more return on investment than OAKTRSPECLENDNEW. However, ALIOR BANK is 2.23 times more volatile than OAKTRSPECLENDNEW. It trades about 0.14 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about -0.09 per unit of risk. If you would invest 2,202 in ALIOR BANK on December 10, 2024 and sell it today you would earn a total of 156.00 from holding ALIOR BANK or generate 7.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ALIOR BANK vs. OAKTRSPECLENDNEW
Performance |
Timeline |
ALIOR BANK |
OAKTRSPECLENDNEW |
ALIOR BANK and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALIOR BANK and OAKTRSPECLENDNEW
The main advantage of trading using opposite ALIOR BANK and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALIOR BANK position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.ALIOR BANK vs. Beta Systems Software | ALIOR BANK vs. ASURE SOFTWARE | ALIOR BANK vs. Nordic Semiconductor ASA | ALIOR BANK vs. Taiwan Semiconductor Manufacturing |
OAKTRSPECLENDNEW vs. SHELF DRILLING LTD | OAKTRSPECLENDNEW vs. Chengdu PUTIAN Telecommunications | OAKTRSPECLENDNEW vs. Ribbon Communications | OAKTRSPECLENDNEW vs. CITIC Telecom International |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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