Correlation Between Lendinvest PLC and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Lendinvest PLC 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 Lendinvest PLC and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lendinvest PLC and OTP Bank Nyrt, you can compare the effects of market volatilities on Lendinvest PLC 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 Lendinvest PLC with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lendinvest PLC and OTP Bank.
Diversification Opportunities for Lendinvest PLC and OTP Bank
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lendinvest and OTP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lendinvest 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 Lendinvest PLC 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 Lendinvest 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 Lendinvest PLC i.e., Lendinvest PLC and OTP Bank go up and down completely randomly.
Pair Corralation between Lendinvest PLC and OTP Bank
Assuming the 90 days trading horizon Lendinvest PLC is expected to under-perform the OTP Bank. But the stock apears to be less risky and, when comparing its historical volatility, Lendinvest PLC is 5.09 times less risky than OTP Bank. The stock trades about -0.02 of its potential returns per unit of risk. The OTP Bank Nyrt is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,205,054 in OTP Bank Nyrt on September 1, 2024 and sell it today you would earn a total of 53,946 from holding OTP Bank Nyrt or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lendinvest PLC vs. OTP Bank Nyrt
Performance |
| Timeline |
| Lendinvest PLC |
| OTP Bank Nyrt |
Lendinvest PLC and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lendinvest PLC and OTP Bank
The main advantage of trading using opposite Lendinvest PLC and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lendinvest PLC 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.| Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Toyota Motor Corp | Lendinvest PLC vs. Reliance Industries Ltd |
| OTP Bank vs. Infrastrutture Wireless Italiane | OTP Bank vs. Datalogic | OTP Bank vs. Bloomsbury Publishing Plc | OTP Bank vs. Charter Communications Cl |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |