Correlation Between Costco Wholesale and Otp Bank

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

Diversification Opportunities for Costco Wholesale and Otp Bank

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Costco and OTPBF is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Costco Wholesale and Otp Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otp Bank and Costco Wholesale 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 Costco Wholesale are associated (or correlated) with Otp Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otp Bank has no effect on the direction of Costco Wholesale i.e., Costco Wholesale and Otp Bank go up and down completely randomly.

Pair Corralation between Costco Wholesale and Otp Bank

Given the investment horizon of 90 days Costco Wholesale is expected to under-perform the Otp Bank. In addition to that, Costco Wholesale is 1.66 times more volatile than Otp Bank. It trades about -0.18 of its total potential returns per unit of risk. Otp Bank is currently generating about 0.07 per unit of volatility. If you would invest  2,195  in Otp Bank on June 29, 2022 and sell it today you would earn a total of  55.00  from holding Otp Bank or generate 2.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Costco Wholesale  vs.  Otp Bank

 Performance (%) 
       Timeline  
Costco Wholesale 
Costco Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Costco Wholesale are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Costco Wholesale is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Costco Price Channel

Otp Bank 
OTPBF Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Otp Bank are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish fundamental drivers, Otp Bank exhibited solid returns over the last few months and may actually be approaching a breakup point.

OTPBF Price Channel

Costco Wholesale and Otp Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Costco Wholesale and Otp Bank

The main advantage of trading using opposite Costco Wholesale and Otp Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Costco Wholesale position performs unexpectedly, Otp Bank 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 Otp Bank will offset losses from the drop in Otp Bank's long position.
Costco Wholesale vs. Kibush Capital Corp
The idea behind Costco Wholesale and Otp Bank 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.
Otp Bank vs. Apple Inc
Otp Bank vs. Kibush Capital Corp
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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