Correlation Between OTP Bank and Newmont Corp
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Newmont Corp 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 Newmont Corp 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 Newmont Corp, you can compare the effects of market volatilities on OTP Bank and Newmont Corp 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 Newmont Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Newmont Corp.
Diversification Opportunities for OTP Bank and Newmont Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OTP and Newmont is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Newmont Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont 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 Newmont Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont Corp has no effect on the direction of OTP Bank i.e., OTP Bank and Newmont Corp go up and down completely randomly.
Pair Corralation between OTP Bank and Newmont Corp
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 2.72 times more return on investment than Newmont Corp. However, OTP Bank is 2.72 times more volatile than Newmont Corp. It trades about 0.03 of its potential returns per unit of risk. Newmont Corp is currently generating about -0.01 per unit of risk. If you would invest 1,176,324 in OTP Bank Nyrt on September 24, 2024 and sell it today you would earn a total of 82,676 from holding OTP Bank Nyrt or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.2% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Newmont Corp
Performance |
| Timeline |
| OTP Bank Nyrt |
| Newmont Corp |
OTP Bank and Newmont Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Newmont Corp
The main advantage of trading using opposite OTP Bank and Newmont Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Newmont Corp 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 Newmont Corp will offset losses from the drop in Newmont Corp'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 |
| Newmont Corp vs. Uniper SE | Newmont Corp vs. Mulberry Group PLC | Newmont Corp vs. London Security Plc | Newmont Corp vs. Triad Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |