Correlation Between Gedeon Richter and MOL Hungarian
Can any of the company-specific risk be diversified away by investing in both Gedeon Richter and MOL Hungarian 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 Gedeon Richter and MOL Hungarian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gedeon Richter PLC and MOL Hungarian Oil, you can compare the effects of market volatilities on Gedeon Richter and MOL Hungarian 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 Gedeon Richter with a short position of MOL Hungarian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gedeon Richter and MOL Hungarian.
Diversification Opportunities for Gedeon Richter and MOL Hungarian
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gedeon and MOL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gedeon Richter PLC and MOL Hungarian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Hungarian Oil and Gedeon Richter 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 Gedeon Richter PLC are associated (or correlated) with MOL Hungarian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL Hungarian Oil has no effect on the direction of Gedeon Richter i.e., Gedeon Richter and MOL Hungarian go up and down completely randomly.
Pair Corralation between Gedeon Richter and MOL Hungarian
If you would invest 292,200 in MOL Hungarian Oil on September 1, 2024 and sell it today you would earn a total of 0.00 from holding MOL Hungarian Oil or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gedeon Richter PLC vs. MOL Hungarian Oil
Performance |
| Timeline |
| Gedeon Richter PLC |
| MOL Hungarian Oil |
Gedeon Richter and MOL Hungarian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gedeon Richter and MOL Hungarian
The main advantage of trading using opposite Gedeon Richter and MOL Hungarian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gedeon Richter position performs unexpectedly, MOL Hungarian 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 MOL Hungarian will offset losses from the drop in MOL Hungarian's long position.| Gedeon Richter vs. HCA Healthcare | Gedeon Richter vs. CVS Health Corp | Gedeon Richter vs. Universal Health Services | Gedeon Richter vs. Worldwide Healthcare Trust |
| MOL Hungarian vs. Aeorema Communications Plc | MOL Hungarian vs. Verizon Communications | MOL Hungarian vs. Bloomsbury Publishing Plc | MOL Hungarian vs. Infrastrutture Wireless Italiane |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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