Correlation Between Eclectic Bar and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Eclectic Bar 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 Eclectic Bar and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eclectic Bar Group and OTP Bank Nyrt, you can compare the effects of market volatilities on Eclectic Bar 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 Eclectic Bar with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclectic Bar and OTP Bank.
Diversification Opportunities for Eclectic Bar and OTP Bank
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eclectic and OTP is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eclectic Bar Group 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 Eclectic Bar 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 Eclectic Bar Group 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 Eclectic Bar i.e., Eclectic Bar and OTP Bank go up and down completely randomly.
Pair Corralation between Eclectic Bar and OTP Bank
If you would invest 2,200 in Eclectic Bar Group on September 24, 2024 and sell it today you would earn a total of 2,500 from holding Eclectic Bar Group or generate 113.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclectic Bar Group vs. OTP Bank Nyrt
Performance |
| Timeline |
| Eclectic Bar Group |
| OTP Bank Nyrt |
Eclectic Bar and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclectic Bar and OTP Bank
The main advantage of trading using opposite Eclectic Bar and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclectic Bar 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.| Eclectic Bar vs. Toyota Motor Corp | Eclectic Bar vs. SoftBank Group Corp | Eclectic Bar vs. OTP Bank Nyrt | Eclectic Bar vs. Newmont Corp |
| OTP Bank vs. Uniper SE | OTP Bank vs. Mulberry Group PLC | OTP Bank vs. London Security Plc | OTP Bank vs. Triad Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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