Correlation Between MOL Nyrt and ANY Security

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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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

MOL Nyrt  vs.  ANY Security Printing

 Performance 
       Timeline  
MOL Nyrt 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MOL Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, MOL Nyrt is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
ANY Security Printing 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in ANY Security Printing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, ANY Security is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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.
The idea behind MOL Nyrt and ANY Security Printing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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