Correlation Between ANY Security and MOL Nyrt

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

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

Diversification Opportunities for ANY Security and MOL Nyrt

0.36

Correlation Coefficient

ANY Security  MOL Nyrt

Weak diversification

The 3 months correlation between ANY and MOL is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ANY Security Printing and MOL Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Nyrt and ANY Security 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 ANY Security Printing are associated (or correlated) with MOL Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL Nyrt has no effect on the direction of ANY Security i.e., ANY Security and MOL Nyrt go up and down completely randomly.

Pair Corralation between ANY Security and MOL Nyrt

Assuming the 90 days trading horizon ANY Security Printing is expected to generate 1.35 times more return on investment than MOL Nyrt. However, ANY Security is 1.35 times more volatile than MOL Nyrt. It trades about 0.17 of its potential returns per unit of risk. MOL Nyrt is currently generating about 0.03 per unit of risk. If you would invest  129,154  in ANY Security Printing on September 14, 2024 and sell it today you would earn a total of  295,846  from holding ANY Security Printing or generate 229.06% return on investment over 90 days.

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

ANY Security Printing  vs.  MOL Nyrt

ANY Security Printing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANY Security Printing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, ANY Security is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

MOL Nyrt

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MOL Nyrt are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, MOL Nyrt is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ANY Security and MOL Nyrt

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

The idea behind ANY Security Printing and MOL 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.