Correlation Between Aspocomp Group and Honkarakenne Oyj
Can any of the company-specific risk be diversified away by investing in both Aspocomp Group and Honkarakenne Oyj 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 Aspocomp Group and Honkarakenne Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspocomp Group Oyj and Honkarakenne Oyj B, you can compare the effects of market volatilities on Aspocomp Group and Honkarakenne Oyj 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 Aspocomp Group with a short position of Honkarakenne Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspocomp Group and Honkarakenne Oyj.
Diversification Opportunities for Aspocomp Group and Honkarakenne Oyj
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspocomp and Honkarakenne is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Aspocomp Group Oyj and Honkarakenne Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honkarakenne Oyj B and Aspocomp Group 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 Aspocomp Group Oyj are associated (or correlated) with Honkarakenne Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honkarakenne Oyj B has no effect on the direction of Aspocomp Group i.e., Aspocomp Group and Honkarakenne Oyj go up and down completely randomly.
Pair Corralation between Aspocomp Group and Honkarakenne Oyj
Assuming the 90 days trading horizon Aspocomp Group Oyj is expected to generate 1.33 times more return on investment than Honkarakenne Oyj. However, Aspocomp Group is 1.33 times more volatile than Honkarakenne Oyj B. It trades about 0.12 of its potential returns per unit of risk. Honkarakenne Oyj B is currently generating about 0.0 per unit of risk. If you would invest 280.00 in Aspocomp Group Oyj on November 28, 2024 and sell it today you would earn a total of 113.00 from holding Aspocomp Group Oyj or generate 40.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspocomp Group Oyj vs. Honkarakenne Oyj B
Performance |
| Timeline |
| Aspocomp Group Oyj |
| Honkarakenne Oyj B |
Aspocomp Group and Honkarakenne Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspocomp Group and Honkarakenne Oyj
The main advantage of trading using opposite Aspocomp Group and Honkarakenne Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspocomp Group position performs unexpectedly, Honkarakenne Oyj 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 Honkarakenne Oyj will offset losses from the drop in Honkarakenne Oyj's long position.| Aspocomp Group vs. Digia Oyj | Aspocomp Group vs. Bittium Oyj | Aspocomp Group vs. CapMan Oyj B | Aspocomp Group vs. Honkarakenne Oyj B |
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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 the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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