Correlation Between OTP Bank and ALTEO Energiaszolgalta
Can any of the company-specific risk be diversified away by investing in both OTP Bank and ALTEO Energiaszolgalta 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 OTP Bank and ALTEO Energiaszolgalta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OTP Bank Nyrt and ALTEO Energiaszolgaltato Nyrt, you can compare the effects of market volatilities on OTP Bank and ALTEO Energiaszolgalta 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 OTP Bank with a short position of ALTEO Energiaszolgalta. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and ALTEO Energiaszolgalta.
Diversification Opportunities for OTP Bank and ALTEO Energiaszolgalta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OTP and ALTEO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and ALTEO Energiaszolgaltato Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTEO Energiaszolgalta and OTP Bank 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 OTP Bank Nyrt are associated (or correlated) with ALTEO Energiaszolgalta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTEO Energiaszolgalta has no effect on the direction of OTP Bank i.e., OTP Bank and ALTEO Energiaszolgalta go up and down completely randomly.
Pair Corralation between OTP Bank and ALTEO Energiaszolgalta
If you would invest (100.00) in ALTEO Energiaszolgaltato Nyrt on August 23, 2024 and sell it today you would earn a total of 100.00 from holding ALTEO Energiaszolgaltato Nyrt or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. ALTEO Energiaszolgaltato Nyrt
Performance |
| Timeline |
| OTP Bank Nyrt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| ALTEO Energiaszolgalta |
OTP Bank and ALTEO Energiaszolgalta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and ALTEO Energiaszolgalta
The main advantage of trading using opposite OTP Bank and ALTEO Energiaszolgalta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, ALTEO Energiaszolgalta 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 ALTEO Energiaszolgalta will offset losses from the drop in ALTEO Energiaszolgalta's long position.| OTP Bank vs. OPUS GLOBAL Nyrt | OTP Bank vs. Infineon Technologies AG | OTP Bank vs. Appeninn Nyrt | OTP Bank vs. MOL Nyrt |
| ALTEO Energiaszolgalta vs. OPUS GLOBAL Nyrt | ALTEO Energiaszolgalta vs. OTP Bank Nyrt | ALTEO Energiaszolgalta vs. Infineon Technologies AG | ALTEO Energiaszolgalta vs. Appeninn 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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