Correlation Between MOL Hungarian and Gedeon Richter
Can any of the company-specific risk be diversified away by investing in both MOL Hungarian and Gedeon Richter 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 MOL Hungarian and Gedeon Richter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL Hungarian Oil and Gedeon Richter PLC, you can compare the effects of market volatilities on MOL Hungarian and Gedeon Richter 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 MOL Hungarian with a short position of Gedeon Richter. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Hungarian and Gedeon Richter.
Diversification Opportunities for MOL Hungarian and Gedeon Richter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOL and Gedeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MOL Hungarian Oil and Gedeon Richter PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedeon Richter PLC and MOL Hungarian 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 MOL Hungarian Oil are associated (or correlated) with Gedeon Richter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedeon Richter PLC has no effect on the direction of MOL Hungarian i.e., MOL Hungarian and Gedeon Richter go up and down completely randomly.
Pair Corralation between MOL Hungarian and Gedeon Richter
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 |
MOL Hungarian Oil vs. Gedeon Richter PLC
Performance |
| Timeline |
| MOL Hungarian Oil |
| Gedeon Richter PLC |
MOL Hungarian and Gedeon Richter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL Hungarian and Gedeon Richter
The main advantage of trading using opposite MOL Hungarian and Gedeon Richter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Hungarian position performs unexpectedly, Gedeon Richter 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 Gedeon Richter will offset losses from the drop in Gedeon Richter's long position.| MOL Hungarian vs. Aeorema Communications Plc | MOL Hungarian vs. Verizon Communications | MOL Hungarian vs. Bloomsbury Publishing Plc | MOL Hungarian vs. Infrastrutture Wireless Italiane |
| Gedeon Richter vs. HCA Healthcare | Gedeon Richter vs. CVS Health Corp | Gedeon Richter vs. Universal Health Services | Gedeon Richter vs. Worldwide Healthcare 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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