Correlation Between OTP Bank and Miton UK
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Miton UK 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 Miton UK 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 Miton UK MicroCap, you can compare the effects of market volatilities on OTP Bank and Miton UK 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 Miton UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Miton UK.
Diversification Opportunities for OTP Bank and Miton UK
Good diversification
The 3 months correlation between OTP and Miton is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Miton UK MicroCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miton UK MicroCap 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 Miton UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miton UK MicroCap has no effect on the direction of OTP Bank i.e., OTP Bank and Miton UK go up and down completely randomly.
Pair Corralation between OTP Bank and Miton UK
Assuming the 90 days trading horizon OTP Bank Nyrt is expected to generate 10.13 times more return on investment than Miton UK. However, OTP Bank is 10.13 times more volatile than Miton UK MicroCap. It trades about 0.05 of its potential returns per unit of risk. Miton UK MicroCap is currently generating about -0.03 per unit of risk. If you would invest 1,205,054 in OTP Bank Nyrt on September 3, 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. Miton UK MicroCap
Performance |
| Timeline |
| OTP Bank Nyrt |
| Miton UK MicroCap |
OTP Bank and Miton UK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Miton UK
The main advantage of trading using opposite OTP Bank and Miton UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Miton UK 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 Miton UK will offset losses from the drop in Miton UK's long position.| OTP Bank vs. AMG Advanced Metallurgical | OTP Bank vs. Panther Metals PLC | OTP Bank vs. G5 Entertainment AB | OTP Bank vs. Everyman Media Group |
| Miton UK vs. United Internet AG | Miton UK vs. Batm Advanced Communications | Miton UK vs. GreenX Metals | Miton UK vs. Future Metals NL |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |