Correlation Between MOL Nyrt and ANY Security
Can any of the company-specific risk be diversified away by investing in both MOL Nyrt and ANY Security 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 MOL Nyrt and ANY Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL Nyrt and ANY Security Printing, you can compare the effects of market volatilities on MOL Nyrt and ANY Security 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 MOL Nyrt with a short position of ANY Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Nyrt and ANY Security.
Diversification Opportunities for MOL Nyrt and ANY Security
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOL and ANY is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MOL Nyrt and ANY Security Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANY Security Printing and MOL Nyrt 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 MOL Nyrt are associated (or correlated) with ANY Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANY Security Printing has no effect on the direction of MOL Nyrt i.e., MOL Nyrt and ANY Security go up and down completely randomly.
Pair Corralation between MOL Nyrt and ANY Security
Assuming the 90 days trading horizon MOL Nyrt is expected to under-perform the ANY Security. But the stock apears to be less risky and, when comparing its historical volatility, MOL Nyrt is 2.3 times less risky than ANY Security. The stock trades about -0.05 of its potential returns per unit of risk. The ANY Security Printing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 395,267 in ANY Security Printing on August 25, 2024 and sell it today you would earn a total of 48,733 from holding ANY Security Printing or generate 12.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MOL Nyrt vs. ANY Security Printing
Performance |
Timeline |
MOL Nyrt |
ANY Security Printing |
MOL Nyrt and ANY Security Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MOL Nyrt and ANY Security
The main advantage of trading using opposite MOL Nyrt and ANY Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Nyrt position performs unexpectedly, ANY Security 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 ANY Security will offset losses from the drop in ANY Security's long position.MOL Nyrt vs. Magyar Telekom PLC | MOL Nyrt vs. Infineon Technologies AG | MOL Nyrt vs. AKKO Invest Nyrt | MOL Nyrt vs. Deutsche Lufthansa AG |
ANY Security vs. Commerzbank AG | ANY Security vs. OTP Bank Nyrt | ANY Security vs. NordTelekom Telecommunications Service | ANY Security vs. Nutex Investments PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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