Correlation Between OTP Bank and Total SA
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Total SA 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 Total SA 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 Total SA, you can compare the effects of market volatilities on OTP Bank and Total SA 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 Total SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Total SA.
Diversification Opportunities for OTP Bank and Total SA
Pay attention - limited upside
The 3 months correlation between OTP and Total is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Total SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total SA 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 Total SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total SA has no effect on the direction of OTP Bank i.e., OTP Bank and Total SA go up and down completely randomly.
Pair Corralation between OTP Bank and Total SA
If you would invest 1,056,860 in OTP Bank Nyrt on September 1, 2024 and sell it today you would earn a total of 1,060,140 from holding OTP Bank Nyrt or generate 100.31% 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. Total SA
Performance |
| Timeline |
| OTP Bank Nyrt |
| Total SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OTP Bank and Total SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Total SA
The main advantage of trading using opposite OTP Bank and Total SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Total SA 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 Total SA will offset losses from the drop in Total SA's long position.| OTP Bank vs. NordTelekom Telecommunications Service | OTP Bank vs. CIG Pannonia Life | OTP Bank vs. Delta Technologies Nyrt | OTP Bank vs. Commerzbank AG |
| Total SA vs. OPUS GLOBAL Nyrt | Total SA vs. OTP Bank Nyrt | Total SA vs. Infineon Technologies AG | Total SA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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