Correlation Between Raba Jarmuipari and OTP Bank
Can any of the company-specific risk be diversified away by investing in both Raba Jarmuipari 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 Raba Jarmuipari and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raba Jarmuipari Holding and OTP Bank Nyrt, you can compare the effects of market volatilities on Raba Jarmuipari 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 Raba Jarmuipari with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raba Jarmuipari and OTP Bank.
Diversification Opportunities for Raba Jarmuipari and OTP Bank
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Raba and OTP is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Raba Jarmuipari Holding 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 Raba Jarmuipari 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 Raba Jarmuipari Holding 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 Raba Jarmuipari i.e., Raba Jarmuipari and OTP Bank go up and down completely randomly.
Pair Corralation between Raba Jarmuipari and OTP Bank
Assuming the 90 days trading horizon Raba Jarmuipari is expected to generate 10.56 times less return on investment than OTP Bank. In addition to that, Raba Jarmuipari is 1.25 times more volatile than OTP Bank Nyrt. It trades about 0.03 of its total potential returns per unit of risk. OTP Bank Nyrt is currently generating about 0.45 per unit of volatility. If you would invest 1,894,000 in OTP Bank Nyrt on August 27, 2024 and sell it today you would earn a total of 276,000 from holding OTP Bank Nyrt or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Raba Jarmuipari Holding vs. OTP Bank Nyrt
Performance |
| Timeline |
| Raba Jarmuipari Holding |
| OTP Bank Nyrt |
Raba Jarmuipari and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raba Jarmuipari and OTP Bank
The main advantage of trading using opposite Raba Jarmuipari and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raba Jarmuipari 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.| Raba Jarmuipari vs. Magyar Telekom PLC | Raba Jarmuipari vs. CIG Pannonia Life | Raba Jarmuipari vs. Infineon Technologies AG | Raba Jarmuipari vs. AKKO Invest Nyrt |
| OTP Bank vs. NordTelekom Telecommunications Service | OTP Bank vs. Nutex Investments PLC | OTP Bank vs. Delta Technologies 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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