Correlation Between Aiforia Technologies and Detection Technology
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By analyzing existing cross correlation between Aiforia Technologies Oyj and Detection Technology OY, you can compare the effects of market volatilities on Aiforia Technologies and Detection Technology 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 Detection Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aiforia Technologies and Detection Technology.
Diversification Opportunities for Aiforia Technologies and Detection Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aiforia and Detection is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aiforia Technologies Oyj and Detection Technology OY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detection Technology 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 Detection Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detection Technology has no effect on the direction of Aiforia Technologies i.e., Aiforia Technologies and Detection Technology go up and down completely randomly.
Pair Corralation between Aiforia Technologies and Detection Technology
Assuming the 90 days trading horizon Aiforia Technologies Oyj is expected to under-perform the Detection Technology. In addition to that, Aiforia Technologies is 1.16 times more volatile than Detection Technology OY. It trades about -0.48 of its total potential returns per unit of risk. Detection Technology OY is currently generating about -0.41 per unit of volatility. If you would invest 1,625 in Detection Technology OY on August 31, 2024 and sell it today you would lose (225.00) from holding Detection Technology OY or give up 13.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aiforia Technologies Oyj vs. Detection Technology OY
Performance |
| Timeline |
| Aiforia Technologies Oyj |
| Detection Technology |
Aiforia Technologies and Detection Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aiforia Technologies and Detection Technology
The main advantage of trading using opposite Aiforia Technologies and Detection Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aiforia Technologies position performs unexpectedly, Detection Technology 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 Detection Technology will offset losses from the drop in Detection Technology's long position.| Aiforia Technologies vs. Kamux Suomi Oy | Aiforia Technologies vs. Harvia Oyj | Aiforia Technologies vs. Puuilo Oyj | Aiforia Technologies vs. Qt Group Oyj |
| Detection Technology vs. Revenio Group | Detection Technology vs. Remedy Entertainment Oyj | Detection Technology vs. Bittium Oyj | Detection Technology vs. Gofore 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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