Correlation Between Aspocomp Group and LeadDesk Oyj
Can any of the company-specific risk be diversified away by investing in both Aspocomp Group and LeadDesk 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 LeadDesk 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 LeadDesk Oyj, you can compare the effects of market volatilities on Aspocomp Group and LeadDesk 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 LeadDesk Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspocomp Group and LeadDesk Oyj.
Diversification Opportunities for Aspocomp Group and LeadDesk Oyj
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspocomp and LeadDesk is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aspocomp Group Oyj and LeadDesk Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeadDesk Oyj 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 LeadDesk Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeadDesk Oyj has no effect on the direction of Aspocomp Group i.e., Aspocomp Group and LeadDesk Oyj go up and down completely randomly.
Pair Corralation between Aspocomp Group and LeadDesk Oyj
Assuming the 90 days trading horizon Aspocomp Group Oyj is expected to under-perform the LeadDesk Oyj. In addition to that, Aspocomp Group is 1.08 times more volatile than LeadDesk Oyj. It trades about -0.06 of its total potential returns per unit of risk. LeadDesk Oyj is currently generating about -0.02 per unit of volatility. If you would invest 918.00 in LeadDesk Oyj on November 2, 2024 and sell it today you would lose (242.00) from holding LeadDesk Oyj or give up 26.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspocomp Group Oyj vs. LeadDesk Oyj
Performance |
| Timeline |
| Aspocomp Group Oyj |
| LeadDesk Oyj |
Aspocomp Group and LeadDesk Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspocomp Group and LeadDesk Oyj
The main advantage of trading using opposite Aspocomp Group and LeadDesk Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspocomp Group position performs unexpectedly, LeadDesk 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 LeadDesk Oyj will offset losses from the drop in LeadDesk 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 |
| LeadDesk Oyj vs. Reka Industrial Oyj | LeadDesk Oyj vs. Nordea Bank Abp | LeadDesk Oyj vs. Sotkamo Silver AB | LeadDesk Oyj vs. Finnair Oyj |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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