Correlation Between Aiforia Technologies and Fortum Oyj
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aiforia Technologies Oyj and Fortum Oyj, you can compare the effects of market volatilities on Aiforia Technologies and Fortum 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 Aiforia Technologies with a short position of Fortum Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aiforia Technologies and Fortum Oyj.
Diversification Opportunities for Aiforia Technologies and Fortum Oyj
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aiforia and Fortum is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aiforia Technologies Oyj and Fortum Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortum 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 Fortum Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortum Oyj has no effect on the direction of Aiforia Technologies i.e., Aiforia Technologies and Fortum Oyj go up and down completely randomly.
Pair Corralation between Aiforia Technologies and Fortum Oyj
Assuming the 90 days trading horizon Aiforia Technologies Oyj is expected to under-perform the Fortum Oyj. In addition to that, Aiforia Technologies is 1.42 times more volatile than Fortum Oyj. It trades about -0.08 of its total potential returns per unit of risk. Fortum Oyj is currently generating about 0.03 per unit of volatility. If you would invest 1,398 in Fortum Oyj on September 2, 2024 and sell it today you would earn a total of 29.00 from holding Fortum Oyj or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aiforia Technologies Oyj vs. Fortum Oyj
Performance |
| Timeline |
| Aiforia Technologies Oyj |
| Fortum Oyj |
Aiforia Technologies and Fortum Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aiforia Technologies and Fortum Oyj
The main advantage of trading using opposite Aiforia Technologies and Fortum Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aiforia Technologies position performs unexpectedly, Fortum 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 Fortum Oyj will offset losses from the drop in Fortum Oyj's long position.| Aiforia Technologies vs. Alandsbanken Abp A | Aiforia Technologies vs. Detection Technology OY | Aiforia Technologies vs. Trainers House Oyj | Aiforia Technologies vs. Nordea Bank Abp |
| Fortum Oyj vs. Rush Factory Oyj | Fortum Oyj vs. Purmo Group Oyj | Fortum Oyj vs. Boreo Oyj | Fortum Oyj vs. Metsa Board 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |