Correlation Between OTP Bank and Liechtensteinische
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Liechtensteinische 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 Liechtensteinische 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 Liechtensteinische Landesbank AG, you can compare the effects of market volatilities on OTP Bank and Liechtensteinische 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 Liechtensteinische. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Liechtensteinische.
Diversification Opportunities for OTP Bank and Liechtensteinische
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between OTP and Liechtensteinische is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Liechtensteinische Landesbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liechtensteinische 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 Liechtensteinische. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liechtensteinische has no effect on the direction of OTP Bank i.e., OTP Bank and Liechtensteinische go up and down completely randomly.
Pair Corralation between OTP Bank and Liechtensteinische
If you would invest 7,150 in Liechtensteinische Landesbank AG on November 4, 2024 and sell it today you would earn a total of 200.00 from holding Liechtensteinische Landesbank AG or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Liechtensteinische Landesbank
Performance |
| Timeline |
| OTP Bank Nyrt |
| Liechtensteinische |
OTP Bank and Liechtensteinische Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Liechtensteinische
The main advantage of trading using opposite OTP Bank and Liechtensteinische positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Liechtensteinische 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 Liechtensteinische will offset losses from the drop in Liechtensteinische's long position.| OTP Bank vs. Inspiration Healthcare Group | OTP Bank vs. Monster Beverage Corp | OTP Bank vs. Abingdon Health Plc | OTP Bank vs. STMicroelectronics NV |
| Liechtensteinische vs. Ondine Biomedical | Liechtensteinische vs. Lindsell Train Investment | Liechtensteinische vs. Chrysalis Investments | Liechtensteinische vs. Cars 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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