Correlation Between Otp Bank and Badger DAO

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

Diversification Opportunities for Otp Bank and Badger DAO

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between OTPBF and Badger is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Otp Bank and Badger DAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Badger DAO 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 Badger DAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Badger DAO has no effect on the direction of Otp Bank i.e., Otp Bank and Badger DAO go up and down completely randomly.

Pair Corralation between Otp Bank and Badger DAO

Assuming the 90 days horizon Otp Bank is expected to under-perform the Badger DAO. But the otc stock apears to be less risky and, when comparing its historical volatility, Otp Bank is 1.47 times less risky than Badger DAO. The otc stock trades about -0.06 of its potential returns per unit of risk. The Badger DAO is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  344.00  in Badger DAO on May 14, 2022 and sell it today you would earn a total of  150.00  from holding Badger DAO or generate 43.6% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.56%
ValuesDaily Returns

Otp Bank  vs.  Badger DAO

 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 sluggish 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

Badger DAO 
Badger Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Badger DAO are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Badger DAO may actually be approaching a critical reversion point that can send shares even higher in September 2022.

Badger Price Channel

Otp Bank and Badger DAO Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Otp Bank and Badger DAO

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

Otp Bank

Pair trading matchups for Otp Bank

The idea behind Otp Bank and Badger DAO 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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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