Correlation Between OTP Bank and JPMorgan ETFs
Can any of the company-specific risk be diversified away by investing in both OTP Bank and JPMorgan ETFs 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 JPMorgan ETFs 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 JPMorgan ETFs ICAV, you can compare the effects of market volatilities on OTP Bank and JPMorgan ETFs 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 JPMorgan ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and JPMorgan ETFs.
Diversification Opportunities for OTP Bank and JPMorgan ETFs
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between OTP and JPMorgan is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and JPMorgan ETFs ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs ICAV 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 JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs ICAV has no effect on the direction of OTP Bank i.e., OTP Bank and JPMorgan ETFs go up and down completely randomly.
Pair Corralation between OTP Bank and JPMorgan ETFs
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 13.02 times more return on investment than JPMorgan ETFs. However, OTP Bank is 13.02 times more volatile than JPMorgan ETFs ICAV. It trades about 0.04 of its potential returns per unit of risk. JPMorgan ETFs ICAV is currently generating about 0.1 per unit of risk. If you would invest 1,205,054 in OTP Bank Nyrt on September 1, 2024 and sell it today you would earn a total of 53,946 from holding OTP Bank Nyrt or generate 4.48% 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. JPMorgan ETFs ICAV
Performance |
| Timeline |
| OTP Bank Nyrt |
| JPMorgan ETFs ICAV |
OTP Bank and JPMorgan ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and JPMorgan ETFs
The main advantage of trading using opposite OTP Bank and JPMorgan ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, JPMorgan ETFs 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 JPMorgan ETFs will offset losses from the drop in JPMorgan ETFs' long position.| OTP Bank vs. Infrastrutture Wireless Italiane | OTP Bank vs. Datalogic | OTP Bank vs. Bloomsbury Publishing Plc | OTP Bank vs. Charter Communications Cl |
| JPMorgan ETFs vs. GraniteShares 3x Short | JPMorgan ETFs vs. WisdomTree Natural Gas | JPMorgan ETFs vs. Leverage Shares 3x | JPMorgan ETFs vs. WisdomTree Natural Gas |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |