Correlation Between Elmos Semiconductor and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor and OTP Bank 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 Elmos Semiconductor and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elmos Semiconductor SE and OTP Bank Nyrt, you can compare the effects of market volatilities on Elmos Semiconductor and OTP Bank 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 Elmos Semiconductor with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and OTP Bank.
Diversification Opportunities for Elmos Semiconductor and OTP Bank
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elmos and OTP is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt and Elmos Semiconductor 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 Elmos Semiconductor SE are associated (or correlated) with OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of Elmos Semiconductor i.e., Elmos Semiconductor and OTP Bank go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and OTP Bank
Assuming the 90 days trading horizon Elmos Semiconductor is expected to generate 8.75 times less return on investment than OTP Bank. But when comparing it to its historical volatility, Elmos Semiconductor SE is 7.66 times less risky than OTP Bank. It trades about 0.09 of its potential returns per unit of risk. OTP Bank Nyrt is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. OTP Bank Nyrt
Performance |
| Timeline |
| Elmos Semiconductor |
| OTP Bank Nyrt |
Elmos Semiconductor and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and OTP Bank
The main advantage of trading using opposite Elmos Semiconductor and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor position performs unexpectedly, OTP Bank 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 OTP Bank will offset losses from the drop in OTP Bank's long position.| Elmos Semiconductor vs. Hong Kong Land | Elmos Semiconductor vs. Neometals | Elmos Semiconductor vs. Coor Service Management | Elmos Semiconductor vs. Fidelity Sustainable USD |
| OTP Bank vs. McEwen Mining | OTP Bank vs. Bisichi Mining PLC | OTP Bank vs. Beowulf Mining | OTP Bank vs. Hochschild Mining plc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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