Correlation Between AIB Group and Benchmark Bankshares

Can any of the company-specific risk be diversified away by investing in both AIB Group and Benchmark Bankshares 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 AIB Group and Benchmark Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AIB Group PLC and Benchmark Bankshares, you can compare the effects of market volatilities on AIB Group and Benchmark Bankshares 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 AIB Group with a short position of Benchmark Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIB Group and Benchmark Bankshares.

Diversification Opportunities for AIB Group and Benchmark Bankshares

0.0

Correlation Coefficient

AIB Group  Benchmark Bankshares

Pay attention - limited upside

The 3 months correlation between AIB and Benchmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AIB Group PLC and Benchmark Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Bankshares and AIB Group 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 AIB Group PLC are associated (or correlated) with Benchmark Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Bankshares has no effect on the direction of AIB Group i.e., AIB Group and Benchmark Bankshares go up and down completely randomly.

Pair Corralation between AIB Group and Benchmark Bankshares

If you would invest  2,557  in Benchmark Bankshares on May 2, 2025 and sell it today you would earn a total of  343.00  from holding Benchmark Bankshares or generate 13.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AIB Group PLC  vs.  Benchmark Bankshares

AIB Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days AIB Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AIB Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Benchmark Bankshares

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Bankshares are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental drivers, Benchmark Bankshares displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AIB Group and Benchmark Bankshares

The main advantage of trading using opposite AIB Group and Benchmark Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIB Group position performs unexpectedly, Benchmark Bankshares 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 Benchmark Bankshares will offset losses from the drop in Benchmark Bankshares' long position.

The idea behind AIB Group PLC and Benchmark Bankshares pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.