Correlation Between Csepel Holding and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Csepel Holding 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 Csepel Holding and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Csepel Holding Nyrt and OTP Bank Nyrt, you can compare the effects of market volatilities on Csepel Holding 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 Csepel Holding with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Csepel Holding and OTP Bank.
Diversification Opportunities for Csepel Holding and OTP Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Csepel and OTP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Csepel Holding Nyrt 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 Csepel Holding 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 Csepel Holding Nyrt 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 Csepel Holding i.e., Csepel Holding and OTP Bank go up and down completely randomly.
Pair Corralation between Csepel Holding and OTP Bank
If you would invest 1,376,496 in OTP Bank Nyrt on August 24, 2024 and sell it today you would earn a total of 783,504 from holding OTP Bank Nyrt or generate 56.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Csepel Holding Nyrt vs. OTP Bank Nyrt
Performance |
| Timeline |
| Csepel Holding Nyrt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OTP Bank Nyrt |
Csepel Holding and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Csepel Holding and OTP Bank
The main advantage of trading using opposite Csepel Holding and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Csepel Holding 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.| Csepel Holding vs. Nutex Investments PLC | Csepel Holding vs. NordTelekom Telecommunications Service | Csepel Holding vs. Delta Technologies Nyrt |
| OTP Bank vs. OPUS GLOBAL Nyrt | OTP Bank vs. Infineon Technologies AG | OTP Bank vs. Appeninn Nyrt | OTP Bank vs. MOL 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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