Correlation Between OTP Bank and MBH Jelzalogbank
Can any of the company-specific risk be diversified away by investing in both OTP Bank and MBH Jelzalogbank 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 MBH Jelzalogbank 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 MBH Jelzalogbank Nyrt, you can compare the effects of market volatilities on OTP Bank and MBH Jelzalogbank 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 MBH Jelzalogbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and MBH Jelzalogbank.
Diversification Opportunities for OTP Bank and MBH Jelzalogbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OTP and MBH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and MBH Jelzalogbank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBH Jelzalogbank Nyrt 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 MBH Jelzalogbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBH Jelzalogbank Nyrt has no effect on the direction of OTP Bank i.e., OTP Bank and MBH Jelzalogbank go up and down completely randomly.
Pair Corralation between OTP Bank and MBH Jelzalogbank
If you would invest 1,884,000 in OTP Bank Nyrt on August 30, 2024 and sell it today you would earn a total of 266,000 from holding OTP Bank Nyrt or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. MBH Jelzalogbank Nyrt
Performance |
| Timeline |
| OTP Bank Nyrt |
| MBH Jelzalogbank Nyrt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OTP Bank and MBH Jelzalogbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and MBH Jelzalogbank
The main advantage of trading using opposite OTP Bank and MBH Jelzalogbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, MBH Jelzalogbank 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 MBH Jelzalogbank will offset losses from the drop in MBH Jelzalogbank's long position.| OTP Bank vs. NordTelekom Telecommunications Service | OTP Bank vs. Delta Technologies Nyrt | OTP Bank vs. Commerzbank AG | OTP Bank vs. Nutex Investments PLC |
| MBH Jelzalogbank vs. Nutex Investments PLC | MBH Jelzalogbank vs. Commerzbank AG | MBH Jelzalogbank vs. OTP Bank Nyrt | MBH Jelzalogbank vs. NordTelekom Telecommunications Service |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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