Correlation Between OMV AG and MOL PLC

Can any of the company-specific risk be diversified away by investing in both OMV AG and MOL PLC 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 OMV AG and MOL PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OMV AG PK and MOL PLC ADR, you can compare the effects of market volatilities on OMV AG and MOL PLC 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 OMV AG with a short position of MOL PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMV AG and MOL PLC.

Diversification Opportunities for OMV AG and MOL PLC

0.91

Correlation Coefficient

OMV AG  MOL PLC

Almost no diversification

The 3 months correlation between OMV and MOL is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding OMV AG PK and MOL PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL PLC ADR and OMV AG 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 OMV AG PK are associated (or correlated) with MOL PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL PLC ADR has no effect on the direction of OMV AG i.e., OMV AG and MOL PLC go up and down completely randomly.

Pair Corralation between OMV AG and MOL PLC

Assuming the 90 days horizon OMV AG is expected to generate 1.88 times less return on investment than MOL PLC. But when comparing it to its historical volatility, OMV AG PK is 1.66 times less risky than MOL PLC. It trades about 0.1 of its potential returns per unit of risk. MOL PLC ADR is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  380.00  in MOL PLC ADR on May 7, 2025 and sell it today you would earn a total of  71.00  from holding MOL PLC ADR or generate 18.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

OMV AG PK  vs.  MOL PLC ADR

OMV AG PK

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OMV AG PK are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, OMV AG may actually be approaching a critical reversion point that can send shares even higher in September 2025.

MOL PLC ADR

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MOL PLC ADR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, MOL PLC showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OMV AG and MOL PLC

The main advantage of trading using opposite OMV AG and MOL PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMV AG position performs unexpectedly, MOL PLC 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 MOL PLC will offset losses from the drop in MOL PLC's long position.

The idea behind OMV AG PK and MOL PLC ADR 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.