Correlation Between Mckesson Corp and Otp Bank

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Can any of the company-specific risk be diversified away by investing in both Mckesson Corp 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 Mckesson Corp and Otp Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mckesson Corp and Otp Bank, you can compare the effects of market volatilities on Mckesson Corp 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 Mckesson Corp with a short position of Otp Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mckesson Corp and Otp Bank.

Diversification Opportunities for Mckesson Corp and Otp Bank

-0.9
  Correlation Coefficient

Pay attention - limited upside

The 12 months correlation between Mckesson and OTPBF is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Mckesson Corp and Otp Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otp Bank and Mckesson Corp 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 Mckesson Corp 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 has no effect on the direction of Mckesson Corp i.e., Mckesson Corp and Otp Bank go up and down completely randomly.

Pair Corralation between Mckesson Corp and Otp Bank

Considering the 90-day investment horizon Mckesson Corp is expected to under-perform the Otp Bank. In addition to that, Mckesson Corp is 1.34 times more volatile than Otp Bank. It trades about -0.13 of its total potential returns per unit of risk. Otp Bank is currently generating about 0.3 per unit of volatility. If you would invest  2,110  in Otp Bank on June 27, 2022 and sell it today you would earn a total of  140.00  from holding Otp Bank or generate 6.64% return on investment over 90 days.
Time Period12 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Mckesson Corp  vs.  Otp Bank

 Performance (%) 
       Timeline  
Mckesson Corp 
Mckesson Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Mckesson Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, Mckesson Corp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Mckesson Price Channel

Otp Bank 
OTPBF Performance
0 of 100
Over the last 90 days Otp Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

OTPBF Price Channel

Mckesson Corp and Otp Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mckesson Corp and Otp Bank

The main advantage of trading using opposite Mckesson Corp and Otp Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mckesson Corp 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.
Mckesson Corp vs. BUSHVELD MINERALS LTD
The idea behind Mckesson Corp and Otp Bank 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.
Otp Bank vs. Industrias Bachoco SA
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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