Correlation Between EON SE and MOL Nyrt
Can any of the company-specific risk be diversified away by investing in both EON SE 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 EON SE and MOL Nyrt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EON SE and MOL Nyrt, you can compare the effects of market volatilities on EON SE 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 EON SE with a short position of MOL Nyrt. Check out your portfolio center. Please also check ongoing floating volatility patterns of EON SE and MOL Nyrt.
Diversification Opportunities for EON SE and MOL Nyrt
Average diversification
The 3 months correlation between EON and MOL is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding EON SE and MOL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Nyrt and EON SE 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 EON SE 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 EON SE i.e., EON SE and MOL Nyrt go up and down completely randomly.
Pair Corralation between EON SE and MOL Nyrt
Assuming the 90 days trading horizon EON SE is expected to under-perform the MOL Nyrt. In addition to that, EON SE is 2.81 times more volatile than MOL Nyrt. It trades about -0.44 of its total potential returns per unit of risk. MOL Nyrt is currently generating about -0.01 per unit of volatility. If you would invest 267,400 in MOL Nyrt on September 18, 2024 and sell it today you would lose (1,200) from holding MOL Nyrt or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 22.73% |
| Values | Daily Returns |
EON SE vs. MOL Nyrt
Performance |
| Timeline |
| EON SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MOL Nyrt |
EON SE and MOL Nyrt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EON SE and MOL Nyrt
The main advantage of trading using opposite EON SE and MOL Nyrt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EON SE 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.| EON SE vs. OTP Bank Nyrt | EON SE vs. MOL Nyrt | EON SE vs. OPUS GLOBAL Nyrt | EON SE vs. ALTEO Energiaszolgaltato Nyrt |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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