Correlation Between Medical Properties and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Medical Properties 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 Medical Properties and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and OTP Bank Nyrt, you can compare the effects of market volatilities on Medical Properties 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 Medical Properties with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and OTP Bank.
Diversification Opportunities for Medical Properties and OTP Bank
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Medical and OTP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust 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 Medical Properties 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 Medical Properties Trust 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 Medical Properties i.e., Medical Properties and OTP Bank go up and down completely randomly.
Pair Corralation between Medical Properties and OTP Bank
If you would invest 398.00 in Medical Properties Trust on November 3, 2024 and sell it today you would earn a total of 74.00 from holding Medical Properties Trust or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. OTP Bank Nyrt
Performance |
| Timeline |
| Medical Properties Trust |
| OTP Bank Nyrt |
Medical Properties and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and OTP Bank
The main advantage of trading using opposite Medical Properties and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties 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.| Medical Properties vs. Mobile Tornado Group | Medical Properties vs. Charter Communications Cl | Medical Properties vs. International Biotechnology Trust | Medical Properties vs. Gaming Realms plc |
| OTP Bank vs. Amedeo Air Four | OTP Bank vs. Sealed Air Corp | OTP Bank vs. Zoom Video Communications | OTP Bank vs. Aeorema Communications Plc |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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