Correlation Between Hemogenyx Pharmaceuticals and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hemogenyx Pharmaceuticals PLC and OTP Bank Nyrt, you can compare the effects of market volatilities on Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hemogenyx Pharmaceuticals and OTP Bank.
Diversification Opportunities for Hemogenyx Pharmaceuticals and OTP Bank
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hemogenyx and OTP is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hemogenyx Pharmaceuticals PLC 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 Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals PLC 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 Hemogenyx Pharmaceuticals i.e., Hemogenyx Pharmaceuticals and OTP Bank go up and down completely randomly.
Pair Corralation between Hemogenyx Pharmaceuticals and OTP Bank
Assuming the 90 days trading horizon Hemogenyx Pharmaceuticals PLC is expected to generate 7.53 times more return on investment than OTP Bank. However, Hemogenyx Pharmaceuticals is 7.53 times more volatile than OTP Bank Nyrt. It trades about 0.05 of its potential returns per unit of risk. OTP Bank Nyrt is currently generating about 0.04 per unit of risk. If you would invest 88,000 in Hemogenyx Pharmaceuticals PLC on October 10, 2024 and sell it today you would lose (49,250) from holding Hemogenyx Pharmaceuticals PLC or give up 55.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hemogenyx Pharmaceuticals PLC vs. OTP Bank Nyrt
Performance |
| Timeline |
| Hemogenyx Pharmaceuticals |
| OTP Bank Nyrt |
Hemogenyx Pharmaceuticals and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hemogenyx Pharmaceuticals and OTP Bank
The main advantage of trading using opposite Hemogenyx Pharmaceuticals and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hemogenyx Pharmaceuticals 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.| Hemogenyx Pharmaceuticals vs. Elmos Semiconductor SE | Hemogenyx Pharmaceuticals vs. Zoom Video Communications | Hemogenyx Pharmaceuticals vs. Cars Inc | Hemogenyx Pharmaceuticals vs. Cellnex Telecom SA |
| OTP Bank vs. AMG Advanced Metallurgical | OTP Bank vs. Bytes Technology | OTP Bank vs. Take Two Interactive Software | OTP Bank vs. Air Products Chemicals |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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