Correlation Between Otp Bank and L3Harris Technologies

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Can any of the company-specific risk be diversified away by investing in both Otp Bank and L3Harris Technologies 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 L3Harris Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otp Bank and L3Harris Technologies, you can compare the effects of market volatilities on Otp Bank and L3Harris Technologies 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 L3Harris Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otp Bank and L3Harris Technologies.

Diversification Opportunities for Otp Bank and L3Harris Technologies

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between OTPBF and L3Harris is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Otp Bank and L3Harris Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L3Harris Technologies 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 L3Harris Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L3Harris Technologies has no effect on the direction of Otp Bank i.e., Otp Bank and L3Harris Technologies go up and down completely randomly.

Pair Corralation between Otp Bank and L3Harris Technologies

Assuming the 90 days horizon Otp Bank is expected to under-perform the L3Harris Technologies. But the otc stock apears to be less risky and, when comparing its historical volatility, Otp Bank is 1.31 times less risky than L3Harris Technologies. The otc stock trades about -0.18 of its potential returns per unit of risk. The L3Harris Technologies is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  23,978  in L3Harris Technologies on March 31, 2022 and sell it today you would lose (415.00)  from holding L3Harris Technologies or give up 1.73% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.24%
ValuesDaily Returns

Otp Bank  vs.  L3Harris Technologies

 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 July 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0467
Payout Ratio
0.24
Forward Annual Dividend Rate
1.17
Ex Dividend Date
2022-05-20

OTPBF Price Channel

L3Harris Technologies 
L3Harris Performance
0 of 100
Over the last 90 days L3Harris Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, L3Harris Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0196
Payout Ratio
0.33
Last Split Factor
10000:9448
Forward Annual Dividend Rate
4.48
Dividend Date
2022-06-17
Ex Dividend Date
2022-06-02
Last Split Date
2009-05-11

L3Harris Price Channel

Otp Bank and L3Harris Technologies Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Otp Bank and L3Harris Technologies

The main advantage of trading using opposite Otp Bank and L3Harris Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otp Bank position performs unexpectedly, L3Harris Technologies 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 L3Harris Technologies will offset losses from the drop in L3Harris Technologies' long position.
The idea behind Otp Bank and L3Harris Technologies 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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