Correlation Between OTP Bank and Universal Display
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Universal Display 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 Universal Display 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 Universal Display Corp, you can compare the effects of market volatilities on OTP Bank and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Universal Display.
Diversification Opportunities for OTP Bank and Universal Display
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OTP and Universal is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Universal Display Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display Corp 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display Corp has no effect on the direction of OTP Bank i.e., OTP Bank and Universal Display go up and down completely randomly.
Pair Corralation between OTP Bank and Universal Display
If you would invest 1,259,000 in OTP Bank Nyrt on October 25, 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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Universal Display Corp
Performance |
| Timeline |
| OTP Bank Nyrt |
| Universal Display Corp |
OTP Bank and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Universal Display
The main advantage of trading using opposite OTP Bank and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| OTP Bank vs. Toyota Motor Corp | OTP Bank vs. SoftBank Group Corp | OTP Bank vs. ONEOK Inc | OTP Bank vs. Public Service Enterprise |
| Universal Display vs. Toyota Motor Corp | Universal Display vs. SoftBank Group Corp | Universal Display vs. OTP Bank Nyrt | Universal Display vs. ONEOK Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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