Correlation Between OTP Bank and Alaska Air
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Alaska Air 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 OTP Bank and Alaska Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OTP Bank Nyrt and Alaska Air Group, you can compare the effects of market volatilities on OTP Bank and Alaska Air 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 OTP Bank with a short position of Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Alaska Air.
Diversification Opportunities for OTP Bank and Alaska Air
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between OTP and Alaska is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group and OTP Bank 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 OTP Bank Nyrt are associated (or correlated) with Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of OTP Bank i.e., OTP Bank and Alaska Air go up and down completely randomly.
Pair Corralation between OTP Bank and Alaska Air
If you would invest 6,308 in Alaska Air Group on November 4, 2024 and sell it today you would earn a total of 1,115 from holding Alaska Air Group or generate 17.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Alaska Air Group
Performance |
| Timeline |
| OTP Bank Nyrt |
| Alaska Air Group |
OTP Bank and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Alaska Air
The main advantage of trading using opposite OTP Bank and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| OTP Bank vs. Inspiration Healthcare Group | OTP Bank vs. Monster Beverage Corp | OTP Bank vs. Abingdon Health Plc | OTP Bank vs. STMicroelectronics NV |
| Alaska Air vs. National Beverage Corp | Alaska Air vs. Charter Communications Cl | Alaska Air vs. American Homes 4 | Alaska Air vs. Air Products Chemicals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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