Correlation Between OTP Bank and Chengdu PUTIAN
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Chengdu PUTIAN 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 Chengdu PUTIAN 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 Chengdu PUTIAN Telecommunications, you can compare the effects of market volatilities on OTP Bank and Chengdu PUTIAN 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 Chengdu PUTIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Chengdu PUTIAN.
Diversification Opportunities for OTP Bank and Chengdu PUTIAN
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OTP and Chengdu is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Chengdu PUTIAN Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu PUTIAN Telec 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 Chengdu PUTIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu PUTIAN Telec has no effect on the direction of OTP Bank i.e., OTP Bank and Chengdu PUTIAN go up and down completely randomly.
Pair Corralation between OTP Bank and Chengdu PUTIAN
Assuming the 90 days horizon OTP Bank Nyrt is expected to generate 0.4 times more return on investment than Chengdu PUTIAN. However, OTP Bank Nyrt is 2.5 times less risky than Chengdu PUTIAN. It trades about 0.07 of its potential returns per unit of risk. Chengdu PUTIAN Telecommunications is currently generating about -0.02 per unit of risk. If you would invest 4,956 in OTP Bank Nyrt on October 12, 2024 and sell it today you would earn a total of 244.00 from holding OTP Bank Nyrt or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Chengdu PUTIAN Telecommunicati
Performance |
| Timeline |
| OTP Bank Nyrt |
| Chengdu PUTIAN Telec |
OTP Bank and Chengdu PUTIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Chengdu PUTIAN
The main advantage of trading using opposite OTP Bank and Chengdu PUTIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Chengdu PUTIAN 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 Chengdu PUTIAN will offset losses from the drop in Chengdu PUTIAN's long position.| OTP Bank vs. Ameriprise Financial | OTP Bank vs. UNIQA INSURANCE GR | OTP Bank vs. PLAYTECH | OTP Bank vs. PLAY2CHILL SA ZY |
| Chengdu PUTIAN vs. ZTE Corporation | Chengdu PUTIAN vs. Superior Plus Corp | Chengdu PUTIAN vs. NMI Holdings | Chengdu PUTIAN vs. SIVERS SEMICONDUCTORS AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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