Correlation Between OTP Bank and Coca Cola
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Coca Cola 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 Coca Cola 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 Coca Cola Co, you can compare the effects of market volatilities on OTP Bank and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Coca Cola.
Diversification Opportunities for OTP Bank and Coca Cola
Pay attention - limited upside
The 3 months correlation between OTP and Coca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Coca Cola Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of OTP Bank i.e., OTP Bank and Coca Cola go up and down completely randomly.
Pair Corralation between OTP Bank and Coca Cola
If you would invest 6,155 in Coca Cola Co on December 28, 2024 and sell it today you would earn a total of 905.00 from holding Coca Cola Co or generate 14.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OTP Bank Nyrt vs. Coca Cola Co
Performance |
Timeline |
OTP Bank Nyrt |
Coca Cola |
OTP Bank and Coca Cola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OTP Bank and Coca Cola
The main advantage of trading using opposite OTP Bank and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.OTP Bank vs. Blackrock World Mining | OTP Bank vs. Zegona Communications Plc | OTP Bank vs. Jacquet Metal Service | OTP Bank vs. United Internet AG |
Coca Cola vs. Heavitree Brewery | Coca Cola vs. Vitec Software Group | Coca Cola vs. K3 Business Technology | Coca Cola vs. Bytes Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |