Correlation Between FC Investment and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both FC Investment and OneSavings Bank 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 FC Investment and OneSavings Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FC Investment Trust and OneSavings Bank PLC, you can compare the effects of market volatilities on FC Investment and OneSavings Bank 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 FC Investment with a short position of OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of FC Investment and OneSavings Bank.
Diversification Opportunities for FC Investment and OneSavings Bank
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FCIT and OneSavings is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding FC Investment Trust and OneSavings Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSavings Bank PLC and FC Investment 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 FC Investment Trust are associated (or correlated) with OneSavings Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSavings Bank PLC has no effect on the direction of FC Investment i.e., FC Investment and OneSavings Bank go up and down completely randomly.
Pair Corralation between FC Investment and OneSavings Bank
Assuming the 90 days trading horizon FC Investment is expected to generate 1.99 times less return on investment than OneSavings Bank. But when comparing it to its historical volatility, FC Investment Trust is 1.43 times less risky than OneSavings Bank. It trades about 0.25 of its potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 44,900 in OneSavings Bank PLC on April 23, 2025 and sell it today you would earn a total of 12,100 from holding OneSavings Bank PLC or generate 26.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
FC Investment Trust vs. OneSavings Bank PLC
Performance |
Timeline |
FC Investment Trust |
OneSavings Bank PLC |
FC Investment and OneSavings Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FC Investment and OneSavings Bank
The main advantage of trading using opposite FC Investment and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FC Investment position performs unexpectedly, OneSavings Bank 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 OneSavings Bank will offset losses from the drop in OneSavings Bank's long position.FC Investment vs. Seche Environnement SA | FC Investment vs. Allianz Technology Trust | FC Investment vs. PureTech Health plc | FC Investment vs. Impax Environmental Markets |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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