Correlation Between OTP Bank and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Hollywood Bowl 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 Hollywood Bowl 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 Hollywood Bowl Group, you can compare the effects of market volatilities on OTP Bank and Hollywood Bowl 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 Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Hollywood Bowl.
Diversification Opportunities for OTP Bank and Hollywood Bowl
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between OTP and Hollywood is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Hollywood Bowl Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Bowl 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 Hollywood Bowl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Bowl Group has no effect on the direction of OTP Bank i.e., OTP Bank and Hollywood Bowl go up and down completely randomly.
Pair Corralation between OTP Bank and Hollywood Bowl
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 20.44 times more return on investment than Hollywood Bowl. However, OTP Bank is 20.44 times more volatile than Hollywood Bowl Group. It trades about 0.1 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.12 per unit of risk. If you would invest 1,259,000 in OTP Bank Nyrt on September 12, 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. Hollywood Bowl Group
Performance |
| Timeline |
| OTP Bank Nyrt |
| Hollywood Bowl Group |
OTP Bank and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Hollywood Bowl
The main advantage of trading using opposite OTP Bank and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Hollywood Bowl 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 Hollywood Bowl will offset losses from the drop in Hollywood Bowl's long position.| OTP Bank vs. McEwen Mining | OTP Bank vs. Bisichi Mining PLC | OTP Bank vs. Beowulf Mining | OTP Bank vs. Hochschild Mining plc |
| Hollywood Bowl vs. National Atomic Co | Hollywood Bowl vs. OTP Bank Nyrt | Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Samsung Electronics Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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