Correlation Between Komercni Banka and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Komercni Banka 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 Komercni Banka and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komercni Banka and OTP Bank Nyrt, you can compare the effects of market volatilities on Komercni Banka 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 Komercni Banka with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and OTP Bank.
Diversification Opportunities for Komercni Banka and OTP Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Komercni and OTP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka 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 Komercni Banka 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 Komercni Banka 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 Komercni Banka i.e., Komercni Banka and OTP Bank go up and down completely randomly.
Pair Corralation between Komercni Banka and OTP Bank
If you would invest 1,259,000 in OTP Bank Nyrt on November 28, 2024 and sell it today you would earn a total of 0.00 from holding OTP Bank Nyrt or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komercni Banka vs. OTP Bank Nyrt
Performance |
| Timeline |
| Komercni Banka |
| OTP Bank Nyrt |
Komercni Banka and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komercni Banka and OTP Bank
The main advantage of trading using opposite Komercni Banka and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka 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.| Komercni Banka vs. Atalaya Mining | Komercni Banka vs. Fortuna Silver Mines | Komercni Banka vs. First Majestic Silver | Komercni Banka vs. Griffin Mining |
| OTP Bank vs. Hansa Investment | OTP Bank vs. OneSavings Bank PLC | OTP Bank vs. URU Metals | OTP Bank vs. Central Asia 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |