Correlation Between Aiforia Technologies and Alma Media
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By analyzing existing cross correlation between Aiforia Technologies Oyj and Alma Media Oyj, you can compare the effects of market volatilities on Aiforia Technologies and Alma Media 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 Aiforia Technologies with a short position of Alma Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aiforia Technologies and Alma Media.
Diversification Opportunities for Aiforia Technologies and Alma Media
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aiforia and Alma is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aiforia Technologies Oyj and Alma Media Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alma Media Oyj and Aiforia Technologies 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 Aiforia Technologies Oyj are associated (or correlated) with Alma Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alma Media Oyj has no effect on the direction of Aiforia Technologies i.e., Aiforia Technologies and Alma Media go up and down completely randomly.
Pair Corralation between Aiforia Technologies and Alma Media
Assuming the 90 days trading horizon Aiforia Technologies Oyj is expected to under-perform the Alma Media. But the stock apears to be less risky and, when comparing its historical volatility, Aiforia Technologies Oyj is 1.01 times less risky than Alma Media. The stock trades about -0.36 of its potential returns per unit of risk. The Alma Media Oyj is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,110 in Alma Media Oyj on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Alma Media Oyj or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aiforia Technologies Oyj vs. Alma Media Oyj
Performance |
| Timeline |
| Aiforia Technologies Oyj |
| Alma Media Oyj |
Aiforia Technologies and Alma Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aiforia Technologies and Alma Media
The main advantage of trading using opposite Aiforia Technologies and Alma Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aiforia Technologies position performs unexpectedly, Alma Media 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 Alma Media will offset losses from the drop in Alma Media's long position.| Aiforia Technologies vs. SSH Communications Security | Aiforia Technologies vs. Tamtron Group Oyj | Aiforia Technologies vs. Metsa Board Oyj | Aiforia Technologies vs. Qt Group Oyj |
| Alma Media vs. Tokmanni Group Oyj | Alma Media vs. Kemira Oyj | Alma Media vs. Elisa Oyj | Alma Media vs. Valmet 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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