Correlation Between OTP Bank and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Chocoladefabriken 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 Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on OTP Bank and Chocoladefabriken 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 Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Chocoladefabriken.
Diversification Opportunities for OTP Bank and Chocoladefabriken
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between OTP and Chocoladefabriken is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of OTP Bank i.e., OTP Bank and Chocoladefabriken go up and down completely randomly.
Pair Corralation between OTP Bank and Chocoladefabriken
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 22.35 times more return on investment than Chocoladefabriken. However, OTP Bank is 22.35 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.09 of its potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.18 per unit of risk. If you would invest 1,259,000 in OTP Bank Nyrt on November 2, 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 | 100.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| OTP Bank Nyrt |
| Chocoladefabriken Lindt |
OTP Bank and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Chocoladefabriken
The main advantage of trading using opposite OTP Bank and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken's long position.| OTP Bank vs. Berkshire Hathaway | OTP Bank vs. Samsung Electronics Co | OTP Bank vs. Samsung Electronics Co | OTP Bank vs. Chocoladefabriken Lindt Spruengli |
| Chocoladefabriken vs. Chrysalis Investments | Chocoladefabriken vs. MoneysupermarketCom Group PLC | Chocoladefabriken vs. Tyson Foods Cl | Chocoladefabriken vs. Livermore Investments Group |
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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