Correlation Between Panther Metals and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Panther Metals and OTP Bank 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 Panther Metals and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and OTP Bank Nyrt, you can compare the effects of market volatilities on Panther Metals and OTP Bank 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 Panther Metals with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and OTP Bank.
Diversification Opportunities for Panther Metals and OTP Bank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Panther and OTP is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt and Panther Metals 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 Panther Metals PLC are associated (or correlated) with OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of Panther Metals i.e., Panther Metals and OTP Bank go up and down completely randomly.
Pair Corralation between Panther Metals and OTP Bank
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 13.03 times more return on investment than OTP Bank. However, Panther Metals is 13.03 times more volatile than OTP Bank Nyrt. It trades about 0.07 of its potential returns per unit of risk. OTP Bank Nyrt is currently generating about 0.03 per unit of risk. If you would invest 11,625 in Panther Metals PLC on September 3, 2024 and sell it today you would lose (125.00) from holding Panther Metals PLC or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Panther Metals PLC vs. OTP Bank Nyrt
Performance |
| Timeline |
| Panther Metals PLC |
| OTP Bank Nyrt |
Panther Metals and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and OTP Bank
The main advantage of trading using opposite Panther Metals and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, OTP Bank 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 OTP Bank will offset losses from the drop in OTP Bank's long position.| Panther Metals vs. Greenroc Mining PLC | Panther Metals vs. Playtech Plc | Panther Metals vs. Telecom Italia SpA | Panther Metals vs. Wheaton Precious Metals |
| OTP Bank vs. AMG Advanced Metallurgical | OTP Bank vs. Panther Metals PLC | OTP Bank vs. G5 Entertainment AB | OTP Bank vs. Everyman Media Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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