Correlation Between OPUS GLOBAL and CIG Pannonia
Can any of the company-specific risk be diversified away by investing in both OPUS GLOBAL and CIG Pannonia 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 OPUS GLOBAL and CIG Pannonia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPUS GLOBAL Nyrt and CIG Pannonia Life, you can compare the effects of market volatilities on OPUS GLOBAL and CIG Pannonia 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 OPUS GLOBAL with a short position of CIG Pannonia. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPUS GLOBAL and CIG Pannonia.
Diversification Opportunities for OPUS GLOBAL and CIG Pannonia
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OPUS and CIG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding OPUS GLOBAL Nyrt and CIG Pannonia Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIG Pannonia Life and OPUS GLOBAL 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 OPUS GLOBAL Nyrt are associated (or correlated) with CIG Pannonia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIG Pannonia Life has no effect on the direction of OPUS GLOBAL i.e., OPUS GLOBAL and CIG Pannonia go up and down completely randomly.
Pair Corralation between OPUS GLOBAL and CIG Pannonia
Assuming the 90 days trading horizon OPUS GLOBAL Nyrt is expected to generate 1.21 times more return on investment than CIG Pannonia. However, OPUS GLOBAL is 1.21 times more volatile than CIG Pannonia Life. It trades about 0.09 of its potential returns per unit of risk. CIG Pannonia Life is currently generating about 0.08 per unit of risk. If you would invest 50,500 in OPUS GLOBAL Nyrt on December 28, 2024 and sell it today you would earn a total of 4,900 from holding OPUS GLOBAL Nyrt or generate 9.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
OPUS GLOBAL Nyrt vs. CIG Pannonia Life
Performance |
Timeline |
OPUS GLOBAL Nyrt |
CIG Pannonia Life |
OPUS GLOBAL and CIG Pannonia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OPUS GLOBAL and CIG Pannonia
The main advantage of trading using opposite OPUS GLOBAL and CIG Pannonia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPUS GLOBAL position performs unexpectedly, CIG Pannonia 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 CIG Pannonia will offset losses from the drop in CIG Pannonia's long position.OPUS GLOBAL vs. Infineon Technologies AG | OPUS GLOBAL vs. OTP Bank Nyrt | OPUS GLOBAL vs. NordTelekom Telecommunications Service | OPUS GLOBAL vs. Commerzbank AG |
CIG Pannonia vs. NordTelekom Telecommunications Service | CIG Pannonia vs. Infineon Technologies AG | CIG Pannonia vs. Nutex Investments PLC | CIG Pannonia vs. OTP Bank Nyrt |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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