Correlation Between OTP Bank and Komercni Banka
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Komercni Banka 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 Komercni Banka 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 Komercni Banka, you can compare the effects of market volatilities on OTP Bank and Komercni Banka 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 Komercni Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Komercni Banka.
Diversification Opportunities for OTP Bank and Komercni Banka
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OTP and Komercni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Komercni Banka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercni Banka 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 Komercni Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercni Banka has no effect on the direction of OTP Bank i.e., OTP Bank and Komercni Banka go up and down completely randomly.
Pair Corralation between OTP Bank and Komercni Banka
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 862.18 times more return on investment than Komercni Banka. However, OTP Bank is 862.18 times more volatile than Komercni Banka. It trades about 0.03 of its potential returns per unit of risk. Komercni Banka is currently generating about 0.05 per unit of risk. If you would invest 1,205,054 in OTP Bank Nyrt on September 2, 2024 and sell it today you would earn a total of 53,946 from holding OTP Bank Nyrt or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Komercni Banka
Performance |
| Timeline |
| OTP Bank Nyrt |
| Komercni Banka |
OTP Bank and Komercni Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Komercni Banka
The main advantage of trading using opposite OTP Bank and Komercni Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Komercni Banka 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 Komercni Banka will offset losses from the drop in Komercni Banka's long position.| OTP Bank vs. Uniper SE | OTP Bank vs. Mulberry Group PLC | OTP Bank vs. London Security Plc | OTP Bank vs. Triad Group PLC |
| Komercni Banka vs. Delta Air Lines | Komercni Banka vs. Wizz Air Holdings | Komercni Banka vs. The Mercantile Investment | Komercni Banka vs. Amedeo Air Four |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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