Correlation Between Budapest and Budapesti Ingatlan
Can any of the company-specific risk be diversified away by investing in both Budapest and Budapesti Ingatlan 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 Budapest and Budapesti Ingatlan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Budapest SE and Budapesti Ingatlan Hasznositasi, you can compare the effects of market volatilities on Budapest and Budapesti Ingatlan 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 Budapest with a short position of Budapesti Ingatlan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Budapest and Budapesti Ingatlan.
Diversification Opportunities for Budapest and Budapesti Ingatlan
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Budapest and Budapesti is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Budapest SE and Budapesti Ingatlan Hasznositas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Budapesti Ingatlan and Budapest 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 Budapest SE are associated (or correlated) with Budapesti Ingatlan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Budapesti Ingatlan has no effect on the direction of Budapest i.e., Budapest and Budapesti Ingatlan go up and down completely randomly.
Pair Corralation between Budapest and Budapesti Ingatlan
Assuming the 90 days trading horizon Budapest is expected to generate 1.76 times less return on investment than Budapesti Ingatlan. But when comparing it to its historical volatility, Budapest SE is 3.64 times less risky than Budapesti Ingatlan. It trades about 0.17 of its potential returns per unit of risk. Budapesti Ingatlan Hasznositasi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 25,600 in Budapesti Ingatlan Hasznositasi on August 28, 2024 and sell it today you would earn a total of 24,800 from holding Budapesti Ingatlan Hasznositasi or generate 96.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.01% |
| Values | Daily Returns |
Budapest SE vs. Budapesti Ingatlan Hasznositas
Performance |
| Timeline |
Budapest and Budapesti Ingatlan Volatility Contrast
Predicted Return Density |
| Returns |
Budapest SE
Pair trading matchups for Budapest
Budapesti Ingatlan Hasznositasi
Pair trading matchups for Budapesti Ingatlan
Pair Trading with Budapest and Budapesti Ingatlan
The main advantage of trading using opposite Budapest and Budapesti Ingatlan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Budapest position performs unexpectedly, Budapesti Ingatlan 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 Budapesti Ingatlan will offset losses from the drop in Budapesti Ingatlan's long position.| Budapest vs. Nutex Investments PLC | Budapest vs. NordTelekom Telecommunications Service | Budapest vs. Delta Technologies Nyrt | Budapest vs. OTP Bank Nyrt |
| Budapesti Ingatlan vs. Magyar Telekom PLC | Budapesti Ingatlan vs. CIG Pannonia Life | Budapesti Ingatlan vs. Infineon Technologies AG | Budapesti Ingatlan vs. AKKO Invest 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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