Correlation Between Otp Bank and Nexera Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Otp Bank and Nexera Energy 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 Nexera Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otp Bank and Nexera Energy, you can compare the effects of market volatilities on Otp Bank and Nexera Energy 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 Nexera Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otp Bank and Nexera Energy.

Diversification Opportunities for Otp Bank and Nexera Energy

-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between OTPBF and Nexera is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Otp Bank and Nexera Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexera Energy 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 are associated (or correlated) with Nexera Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexera Energy has no effect on the direction of Otp Bank i.e., Otp Bank and Nexera Energy go up and down completely randomly.

Pair Corralation between Otp Bank and Nexera Energy

Assuming the 90 days horizon Otp Bank is expected to generate 0.24 times more return on investment than Nexera Energy. However, Otp Bank is 4.1 times less risky than Nexera Energy. It trades about -0.21 of its potential returns per unit of risk. Nexera Energy is currently generating about -0.22 per unit of risk. If you would invest  2,195  in Otp Bank on May 21, 2022 and sell it today you would lose (85.00)  from holding Otp Bank or give up 3.87% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Otp Bank  vs.  Nexera Energy

 Performance (%) 
       Timeline  
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 inconsistent performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in September 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

OTPBF Price Channel

Nexera Energy 
Nexera Performance
0 of 100
Over the last 90 days Nexera Energy 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 basic indicators remain rather sound which may send shares a bit higher in September 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Nexera Price Channel

Otp Bank and Nexera Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Otp Bank and Nexera Energy

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

Otp Bank

Pair trading matchups for Otp Bank

The idea behind Otp Bank and Nexera Energy 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.

Nexera Energy

Pair trading matchups for Nexera Energy

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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Other Complementary Tools

Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go