Correlation Between OTP Bank and Eclectic Bar
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Eclectic Bar 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 Eclectic Bar 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 Eclectic Bar Group, you can compare the effects of market volatilities on OTP Bank and Eclectic Bar 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 Eclectic Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Eclectic Bar.
Diversification Opportunities for OTP Bank and Eclectic Bar
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between OTP and Eclectic is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Eclectic Bar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eclectic Bar Group 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 Eclectic Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eclectic Bar Group has no effect on the direction of OTP Bank i.e., OTP Bank and Eclectic Bar go up and down completely randomly.
Pair Corralation between OTP Bank and Eclectic Bar
If you would invest 4,670 in Eclectic Bar Group on October 12, 2024 and sell it today you would earn a total of 30.00 from holding Eclectic Bar Group or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Eclectic Bar Group
Performance |
| Timeline |
| OTP Bank Nyrt |
| Eclectic Bar Group |
OTP Bank and Eclectic Bar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Eclectic Bar
The main advantage of trading using opposite OTP Bank and Eclectic Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Eclectic Bar 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 Eclectic Bar will offset losses from the drop in Eclectic Bar's long position.| OTP Bank vs. BlackRock Frontiers Investment | OTP Bank vs. Hilton Food Group | OTP Bank vs. New Residential Investment | OTP Bank vs. Austevoll Seafood ASA |
| Eclectic Bar vs. Aberdeen Diversified Income | Eclectic Bar vs. Sunny Optical Technology | Eclectic Bar vs. Seraphim Space Investment | Eclectic Bar vs. Alfa Financial Software |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |