Correlation Between OTP Bank and 70GD
Can any of the company-specific risk be diversified away by investing in both OTP Bank and 70GD 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 70GD 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 70GD, you can compare the effects of market volatilities on OTP Bank and 70GD 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 70GD. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and 70GD.
Diversification Opportunities for OTP Bank and 70GD
Good diversification
The 3 months correlation between OTP and 70GD is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and 70GD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 70GD 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 70GD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 70GD has no effect on the direction of OTP Bank i.e., OTP Bank and 70GD go up and down completely randomly.
Pair Corralation between OTP Bank and 70GD
If you would invest 68.00 in 70GD on September 24, 2024 and sell it today you would earn a total of 3.00 from holding 70GD or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
OTP Bank Nyrt vs. 70GD
Performance |
| Timeline |
| OTP Bank Nyrt |
| 70GD |
OTP Bank and 70GD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and 70GD
The main advantage of trading using opposite OTP Bank and 70GD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, 70GD 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 70GD will offset losses from the drop in 70GD'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 |
| 70GD vs. Toyota Motor Corp | 70GD vs. SoftBank Group Corp | 70GD vs. OTP Bank Nyrt | 70GD vs. Freeport McMoRan |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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