Correlation Between OTP Bank and Alphabet

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Alphabet 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 Alphabet 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 Alphabet Class C, you can compare the effects of market volatilities on OTP Bank and Alphabet 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 Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Alphabet.

Diversification Opportunities for OTP Bank and Alphabet

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between OTP and Alphabet is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Alphabet Class C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Class C 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 Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Class C has no effect on the direction of OTP Bank i.e., OTP Bank and Alphabet go up and down completely randomly.

Pair Corralation between OTP Bank and Alphabet

If you would invest  14,010  in Alphabet Class C on December 29, 2023 and sell it today you would earn a total of  1,184  from holding Alphabet Class C or generate 8.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy9.09%
ValuesDaily Returns

OTP Bank Nyrt  vs.  Alphabet Class C

 Performance 
       Timeline  
OTP Bank Nyrt 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Solid
Over the last 90 days OTP Bank Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak fundamental drivers, OTP Bank reported solid returns over the last few months and may actually be approaching a breakup point.
Alphabet Class C 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet Class C are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Alphabet may actually be approaching a critical reversion point that can send shares even higher in April 2024.

OTP Bank and Alphabet Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with OTP Bank and Alphabet

The main advantage of trading using opposite OTP Bank and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet's long position.
The idea behind OTP Bank Nyrt and Alphabet Class C pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Transaction History
View history of all your transactions and understand their impact on performance
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities