Correlation Between OTP Bank and Sherborne Investors
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Sherborne Investors 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 Sherborne Investors 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 Sherborne Investors Guernsey, you can compare the effects of market volatilities on OTP Bank and Sherborne Investors 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 Sherborne Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Sherborne Investors.
Diversification Opportunities for OTP Bank and Sherborne Investors
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between OTP and Sherborne is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Sherborne Investors Guernsey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sherborne Investors 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 Sherborne Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sherborne Investors has no effect on the direction of OTP Bank i.e., OTP Bank and Sherborne Investors go up and down completely randomly.
Pair Corralation between OTP Bank and Sherborne Investors
If you would invest 1,259,000 in OTP Bank Nyrt on October 24, 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 | 100.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Sherborne Investors Guernsey
Performance |
| Timeline |
| OTP Bank Nyrt |
| Sherborne Investors |
OTP Bank and Sherborne Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Sherborne Investors
The main advantage of trading using opposite OTP Bank and Sherborne Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Sherborne Investors 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 Sherborne Investors will offset losses from the drop in Sherborne Investors' long position.| OTP Bank vs. First Class Metals | OTP Bank vs. Hollywood Bowl Group | OTP Bank vs. JD Sports Fashion | OTP Bank vs. Liberty Media Corp |
| Sherborne Investors vs. Lindsell Train Investment | Sherborne Investors vs. Canadian General Investments | Sherborne Investors vs. Diversified Energy | Sherborne Investors vs. United Internet AG |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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