Otp Bank Nyrt Stock Volatility

OTPBF Stock  USD 49.42  0.00  0.00%   
OTP Bank is not too volatile given 3 months investment horizon. OTP Bank Nyrt maintains Sharpe Ratio (i.e., Efficiency) of 0.26, which implies the firm had a 0.26% return per unit of volatility over the last 3 months. We have analyzed sixteen different technical indicators, which can help you to evaluate if expected returns of 2.58% are justified by taking the suggested risk. Use OTP Bank coefficient of variation of 812.84, and Risk Adjusted Performance of 0.0772 to evaluate company specific risk that cannot be diversified away. Key indicators related to OTP Bank's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
OTP Bank Pink Sheet volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of OTP daily returns, and it is calculated using variance and standard deviation. We also use OTP's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OTP Bank volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as OTP Bank can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of OTP Bank at lower prices. For example, an investor can purchase OTP stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of OTP Bank's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving against OTP Pink Sheet

  0.46AAPL Apple Inc Fiscal Quarter End 31st of March 2024 PairCorr

OTP Bank Market Sensitivity And Downside Risk

OTP Bank's beta coefficient measures the volatility of OTP pink sheet compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents OTP pink sheet's returns against your selected market. In other words, OTP Bank's beta of 0.63 provides an investor with an approximation of how much risk OTP Bank pink sheet can potentially add to one of your existing portfolios. OTP Bank Nyrt exhibits very low volatility with skewness of 8.12 and kurtosis of 66.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OTP Bank's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact OTP Bank's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze OTP Bank Nyrt Demand Trend
Check current 90 days OTP Bank correlation with market (NYSE Composite)

OTP Beta

    
  0.63  
OTP standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  9.98  
It is essential to understand the difference between upside risk (as represented by OTP Bank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OTP Bank's daily returns or price. Since the actual investment returns on holding a position in otp pink sheet tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in OTP Bank.

OTP Bank Nyrt Pink Sheet Volatility Analysis

Volatility refers to the frequency at which OTP Bank pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with OTP Bank's price changes. Investors will then calculate the volatility of OTP Bank's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of OTP Bank's volatility:

Historical Volatility

This type of pink sheet volatility measures OTP Bank's fluctuations based on previous trends. It's commonly used to predict OTP Bank's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for OTP Bank's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on OTP Bank's to be redeemed at a future date.
Transformation
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OTP Bank Projected Return Density Against Market

Assuming the 90 days horizon OTP Bank has a beta of 0.6328 . This indicates as returns on the market go up, OTP Bank average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding OTP Bank Nyrt will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to OTP Bank or OTP sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that OTP Bank's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a OTP pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
OTP Bank Nyrt has an alpha of 0.4963, implying that it can generate a 0.5 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
OTP Bank's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how otp pink sheet's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an OTP Bank Price Volatility?

Several factors can influence a pink sheet's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

OTP Bank Pink Sheet Risk Measures

Assuming the 90 days horizon the coefficient of variation of OTP Bank is 387.52. The daily returns are distributed with a variance of 99.61 and standard deviation of 9.98. The mean deviation of OTP Bank Nyrt is currently at 4.81. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.50
β
Beta against NYSE Composite0.63
σ
Overall volatility
9.98
Ir
Information ratio 0.09

OTP Bank Pink Sheet Return Volatility

OTP Bank historical daily return volatility represents how much of OTP Bank pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 9.9807% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About OTP Bank Volatility

Volatility is a rate at which the price of OTP Bank or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of OTP Bank may increase or decrease. In other words, similar to OTP's beta indicator, it measures the risk of OTP Bank and helps estimate the fluctuations that may happen in a short period of time. So if prices of OTP Bank fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
OTP Bank Nyrt., together with its subsidiaries, provides commercial banking services to retail clients, corporations and agricultural enterprises, and private and institutional investors in Hungary and internationally. The company was incorporated in 1949 and is based in Budapest, Hungary. Otp Bank operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 35370 people.
OTP Bank's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on OTP Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much OTP Bank's price varies over time.

3 ways to utilize OTP Bank's volatility to invest better

Higher OTP Bank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of OTP Bank Nyrt stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. OTP Bank Nyrt stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of OTP Bank Nyrt investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in OTP Bank's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of OTP Bank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

OTP Bank Investment Opportunity

OTP Bank Nyrt has a volatility of 9.98 and is 17.51 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of OTP Bank Nyrt is higher than 88 percent of all global equities and portfolios over the last 90 days. You can use OTP Bank Nyrt to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of OTP Bank to be traded at $48.93 in 90 days.

Significant diversification

The correlation between OTP Bank Nyrt and NYA is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and NYA in the same portfolio, assuming nothing else is changed.

OTP Bank Additional Risk Indicators

The analysis of OTP Bank's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in OTP Bank's investment and either accepting that risk or mitigating it. Along with some common measures of OTP Bank pink sheet's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

OTP Bank Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against OTP Bank as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. OTP Bank's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, OTP Bank's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to OTP Bank Nyrt.
Check out Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the OTP Bank Nyrt information on this page should be used as a complementary analysis to other OTP Bank's statistical models used 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running OTP Bank's price analysis, check to measure OTP Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy OTP Bank is operating at the current time. Most of OTP Bank's value examination focuses on studying past and present price action to predict the probability of OTP Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move OTP Bank's price. Additionally, you may evaluate how the addition of OTP Bank to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between OTP Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if OTP Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, OTP Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.