Correlation Between AKKO Invest and MOL Nyrt
Can any of the company-specific risk be diversified away by investing in both AKKO Invest and MOL Nyrt 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 AKKO Invest and MOL Nyrt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AKKO Invest Nyrt and MOL Nyrt, you can compare the effects of market volatilities on AKKO Invest and MOL Nyrt 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 AKKO Invest with a short position of MOL Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of AKKO Invest and MOL Nyrt.
Diversification Opportunities for AKKO Invest and MOL Nyrt
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AKKO and MOL is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding AKKO Invest Nyrt and MOL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Nyrt and AKKO Invest 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 AKKO Invest Nyrt are associated (or correlated) with MOL Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL Nyrt has no effect on the direction of AKKO Invest i.e., AKKO Invest and MOL Nyrt go up and down completely randomly.
Pair Corralation between AKKO Invest and MOL Nyrt
Assuming the 90 days trading horizon AKKO Invest Nyrt is expected to generate 2.38 times more return on investment than MOL Nyrt. However, AKKO Invest is 2.38 times more volatile than MOL Nyrt. It trades about 0.02 of its potential returns per unit of risk. MOL Nyrt is currently generating about 0.03 per unit of risk. If you would invest 28,900 in AKKO Invest Nyrt on November 2, 2024 and sell it today you would earn a total of 4,900 from holding AKKO Invest Nyrt or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
AKKO Invest Nyrt vs. MOL Nyrt
Performance |
| Timeline |
| AKKO Invest Nyrt |
| MOL Nyrt |
AKKO Invest and MOL Nyrt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AKKO Invest and MOL Nyrt
The main advantage of trading using opposite AKKO Invest and MOL Nyrt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AKKO Invest position performs unexpectedly, MOL Nyrt 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 Nyrt will offset losses from the drop in MOL Nyrt's long position.| AKKO Invest vs. Forras Trust Investment | AKKO Invest vs. Deutsche Bank AG | AKKO Invest vs. OTP Bank Nyrt | AKKO Invest vs. NordTelekom Telecommunications Service |
| MOL Nyrt vs. OTP Bank Nyrt | MOL Nyrt vs. NordTelekom Telecommunications Service | MOL Nyrt vs. Delta Technologies Nyrt |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |