Correlation Between Otp Bank and Bitcoin SV

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

Diversification Opportunities for Otp Bank and Bitcoin SV

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between OTPBF and Bitcoin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Otp Bank and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV 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 Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of Otp Bank i.e., Otp Bank and Bitcoin SV go up and down completely randomly.

Pair Corralation between Otp Bank and Bitcoin SV

Assuming the 90 days horizon Otp Bank is expected to generate 1.36 times more return on investment than Bitcoin SV. However, Otp Bank is 1.36 times more volatile than Bitcoin SV. It trades about -0.03 of its potential returns per unit of risk. Bitcoin SV is currently generating about -0.07 per unit of risk. If you would invest  2,980  in Otp Bank on May 13, 2022 and sell it today you would lose (870.00)  from holding Otp Bank or give up 29.19% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy42.54%
ValuesDaily Returns

Otp Bank  vs.  Bitcoin SV

 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

Bitcoin SV 
Bitcoin Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin SV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Bitcoin SV sustained solid returns over the last few months and may actually be approaching a breakup point.

Bitcoin Price Channel

Otp Bank and Bitcoin SV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Otp Bank and Bitcoin SV

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

Otp Bank

Pair trading matchups for Otp Bank

The idea behind Otp Bank and Bitcoin SV 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.

Bitcoin SV

Pair trading matchups for Bitcoin SV

Starbucks Corp vs. Bitcoin SV
First Citizens vs. Bitcoin SV
Lpl Financial vs. Bitcoin SV
Erie Indemnity vs. Bitcoin SV
Nasdaq vs. Bitcoin SV
Home Bancshares vs. Bitcoin SV
Bgc Partners vs. Bitcoin SV
Bancfirst Corp vs. Bitcoin SV
Boeing vs. Bitcoin SV
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 Bitcoin SV 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. Bitcoin SV'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, Bitcoin SV'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 Bitcoin SV.
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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