Correlation Between STGEORGE MINING and OTP Bank
Can any of the company-specific risk be diversified away by investing in both STGEORGE MINING 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 STGEORGE MINING and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STGEORGE MINING LTD and OTP Bank Nyrt, you can compare the effects of market volatilities on STGEORGE MINING 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 STGEORGE MINING with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of STGEORGE MINING and OTP Bank.
Diversification Opportunities for STGEORGE MINING and OTP Bank
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between STGEORGE and OTP is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding STGEORGE MINING LTD 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 STGEORGE MINING 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 STGEORGE MINING LTD 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 STGEORGE MINING i.e., STGEORGE MINING and OTP Bank go up and down completely randomly.
Pair Corralation between STGEORGE MINING and OTP Bank
Assuming the 90 days horizon STGEORGE MINING LTD is expected to generate 6.31 times more return on investment than OTP Bank. However, STGEORGE MINING is 6.31 times more volatile than OTP Bank Nyrt. It trades about 0.04 of its potential returns per unit of risk. OTP Bank Nyrt is currently generating about 0.08 per unit of risk. If you would invest 4.50 in STGEORGE MINING LTD on November 7, 2024 and sell it today you would lose (3.15) from holding STGEORGE MINING LTD or give up 70.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STGEORGE MINING LTD vs. OTP Bank Nyrt
Performance |
| Timeline |
| STGEORGE MINING LTD |
| OTP Bank Nyrt |
STGEORGE MINING and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STGEORGE MINING and OTP Bank
The main advantage of trading using opposite STGEORGE MINING and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STGEORGE MINING 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.| STGEORGE MINING vs. BHP Group Limited | STGEORGE MINING vs. Rio Tinto Group | STGEORGE MINING vs. Vale SA | STGEORGE MINING vs. Vale SA |
| OTP Bank vs. Playtech plc | OTP Bank vs. UPDATE SOFTWARE | OTP Bank vs. Playa Hotels Resorts | OTP Bank vs. FORMPIPE SOFTWARE 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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