Correlation Between OTP Bank and PureTech Health
Can any of the company-specific risk be diversified away by investing in both OTP Bank and PureTech Health 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 PureTech Health 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 PureTech Health plc, you can compare the effects of market volatilities on OTP Bank and PureTech Health 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 PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and PureTech Health.
Diversification Opportunities for OTP Bank and PureTech Health
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OTP and PureTech is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and PureTech Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PureTech Health plc 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 PureTech Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PureTech Health plc has no effect on the direction of OTP Bank i.e., OTP Bank and PureTech Health go up and down completely randomly.
Pair Corralation between OTP Bank and PureTech Health
If you would invest 1,259,000 in OTP Bank Nyrt on October 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 Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. PureTech Health plc
Performance |
| Timeline |
| OTP Bank Nyrt |
| PureTech Health plc |
OTP Bank and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and PureTech Health
The main advantage of trading using opposite OTP Bank and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, PureTech Health 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 PureTech Health will offset losses from the drop in PureTech Health'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 |
| PureTech Health vs. Trainline Plc | PureTech Health vs. Tavistock Investments Plc | PureTech Health vs. LPKF Laser Electronics | PureTech Health vs. Monks Investment Trust |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |