Correlation Between MOL Hungarian and Hilton Food
Can any of the company-specific risk be diversified away by investing in both MOL Hungarian and Hilton Food 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 Hilton Food 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 Hilton Food Group, you can compare the effects of market volatilities on MOL Hungarian and Hilton Food 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Hungarian and Hilton Food.
Diversification Opportunities for MOL Hungarian and Hilton Food
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOL and Hilton is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MOL Hungarian Oil and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food Group 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of MOL Hungarian i.e., MOL Hungarian and Hilton Food go up and down completely randomly.
Pair Corralation between MOL Hungarian and Hilton Food
Assuming the 90 days trading horizon MOL Hungarian is expected to generate 10.01 times less return on investment than Hilton Food. In addition to that, MOL Hungarian is 1.08 times more volatile than Hilton Food Group. It trades about 0.01 of its total potential returns per unit of risk. Hilton Food Group is currently generating about 0.1 per unit of volatility. If you would invest 62,295 in Hilton Food Group on September 1, 2024 and sell it today you would earn a total of 28,305 from holding Hilton Food Group or generate 45.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.28% |
| Values | Daily Returns |
MOL Hungarian Oil vs. Hilton Food Group
Performance |
| Timeline |
| MOL Hungarian Oil |
| Hilton Food Group |
MOL Hungarian and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL Hungarian and Hilton Food
The main advantage of trading using opposite MOL Hungarian and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Hungarian position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food'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 |
| Hilton Food vs. Intermediate Capital Group | Hilton Food vs. Grand Vision Media | Hilton Food vs. BE Semiconductor Industries | Hilton Food vs. JD Sports Fashion |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |