Correlation Between Automatic Data and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Automatic Data and OTP 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 Automatic Data and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Data Processing and OTP Bank Nyrt, you can compare the effects of market volatilities on Automatic Data and OTP 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 Automatic Data with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and OTP Bank.
Diversification Opportunities for Automatic Data and OTP Bank
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Automatic and OTP is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt and Automatic Data 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 Automatic Data Processing are associated (or correlated) with OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of Automatic Data i.e., Automatic Data and OTP Bank go up and down completely randomly.
Pair Corralation between Automatic Data and OTP Bank
If you would invest 29,300 in Automatic Data Processing on October 20, 2024 and sell it today you would earn a total of 482.00 from holding Automatic Data Processing or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Automatic Data Processing vs. OTP Bank Nyrt
Performance |
| Timeline |
| Automatic Data Processing |
| OTP Bank Nyrt |
Automatic Data and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Data and OTP Bank
The main advantage of trading using opposite Automatic Data and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Data position performs unexpectedly, OTP 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 OTP Bank will offset losses from the drop in OTP Bank's long position.| Automatic Data vs. Take Two Interactive Software | Automatic Data vs. Gaztransport et Technigaz | Automatic Data vs. MyHealthChecked Plc | Automatic Data vs. Optima Health plc |
| OTP Bank vs. Hochschild Mining plc | OTP Bank vs. AMG Advanced Metallurgical | OTP Bank vs. Iron Mountain | OTP Bank vs. First Class Metals |
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 Stocks Directory module to find actively traded stocks across global markets.
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