Correlation Between IShares Core and MOL Nyrt
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and MOL Nyrt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core DAX and MOL Nyrt, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of MOL Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and MOL Nyrt.
Diversification Opportunities for IShares Core and MOL Nyrt
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and MOL is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core DAX and MOL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Nyrt and IShares Core 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 iShares Core DAX 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 IShares Core i.e., IShares Core and MOL Nyrt go up and down completely randomly.
Pair Corralation between IShares Core and MOL Nyrt
Assuming the 90 days trading horizon iShares Core DAX is expected to generate 1.35 times more return on investment than MOL Nyrt. However, IShares Core is 1.35 times more volatile than MOL Nyrt. It trades about 0.39 of its potential returns per unit of risk. MOL Nyrt is currently generating about -0.01 per unit of risk. If you would invest 6,400,000 in iShares Core DAX on September 18, 2024 and sell it today you would earn a total of 531,000 from holding iShares Core DAX or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
iShares Core DAX vs. MOL Nyrt
Performance |
| Timeline |
| iShares Core DAX |
| MOL Nyrt |
IShares Core and MOL Nyrt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and MOL Nyrt
The main advantage of trading using opposite IShares Core and MOL Nyrt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. CIG Pannonia Life | IShares Core vs. Infineon Technologies AG | IShares Core vs. AKKO Invest Nyrt | IShares Core vs. Deutsche Lufthansa AG |
| MOL Nyrt vs. NordTelekom Telecommunications Service | MOL Nyrt vs. Infineon Technologies AG | MOL Nyrt vs. Nutex Investments PLC | MOL Nyrt 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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