Correlation Between OTP Bank and Uniper SE
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on OTP Bank and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Uniper SE.
Diversification Opportunities for OTP Bank and Uniper SE
Good diversification
The 3 months correlation between OTP and Uniper is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of OTP Bank i.e., OTP Bank and Uniper SE go up and down completely randomly.
Pair Corralation between OTP Bank and Uniper SE
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 10.48 times more return on investment than Uniper SE. However, OTP Bank is 10.48 times more volatile than Uniper SE. It trades about 0.1 of its potential returns per unit of risk. Uniper SE is currently generating about -0.06 per unit of risk. If you would invest 1,259,000 in OTP Bank Nyrt on September 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Uniper SE
Performance |
| Timeline |
| OTP Bank Nyrt |
| Uniper SE |
OTP Bank and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Uniper SE
The main advantage of trading using opposite OTP Bank and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE'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 |
| Uniper SE vs. Roebuck Food Group | Uniper SE vs. Sealed Air Corp | Uniper SE vs. Hilton Food Group | Uniper SE vs. Ryanair Holdings 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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