Correlation Between Uniper SE and OTP Bank

Can any of the company-specific risk be diversified away by investing in both Uniper SE 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 Uniper SE and OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Uniper SE and OTP Bank Nyrt, you can compare the effects of market volatilities on Uniper SE 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 Uniper SE with a short position of OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and OTP Bank.

Diversification Opportunities for Uniper SE and OTP Bank

0.0

Correlation Coefficient

Uniper SE  OTP Bank

Pay attention - limited upside

The 3 months correlation between Uniper and OTP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE 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 Uniper SE 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 Uniper SE 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 Uniper SE i.e., Uniper SE and OTP Bank go up and down completely randomly.

Pair Corralation between Uniper SE and OTP Bank

If you would invest  3,877  in Uniper SE on December 30, 2024 and sell it today you would earn a total of  398.00  from holding Uniper SE or generate 10.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Uniper SE  vs.  OTP Bank Nyrt

Uniper SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Uniper SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Uniper SE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

OTP Bank Nyrt

Risk-Adjusted Performance

Very Weak

Over the last 90 days OTP Bank Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OTP Bank is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Uniper SE and OTP Bank

The main advantage of trading using opposite Uniper SE and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE 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.

The idea behind Uniper SE and OTP Bank Nyrt 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.