Correlation Between Aktia Bank and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Aktia Bank and Sampo 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 Aktia Bank and Sampo Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aktia Bank Abp and Sampo Oyj A, you can compare the effects of market volatilities on Aktia Bank and Sampo 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 Aktia Bank with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aktia Bank and Sampo Oyj.
Diversification Opportunities for Aktia Bank and Sampo Oyj
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aktia and Sampo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aktia Bank Abp and Sampo Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj A and Aktia Bank 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 Aktia Bank Abp are associated (or correlated) with Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj A has no effect on the direction of Aktia Bank i.e., Aktia Bank and Sampo Oyj go up and down completely randomly.
Pair Corralation between Aktia Bank and Sampo Oyj
Assuming the 90 days trading horizon Aktia Bank Abp is expected to generate 0.58 times more return on investment than Sampo Oyj. However, Aktia Bank Abp is 1.72 times less risky than Sampo Oyj. It trades about -0.16 of its potential returns per unit of risk. Sampo Oyj A is currently generating about -0.11 per unit of risk. If you would invest 933.00 in Aktia Bank Abp on August 29, 2024 and sell it today you would lose (15.00) from holding Aktia Bank Abp or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aktia Bank Abp vs. Sampo Oyj A
Performance |
| Timeline |
| Aktia Bank Abp |
| Sampo Oyj A |
Aktia Bank and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aktia Bank and Sampo Oyj
The main advantage of trading using opposite Aktia Bank and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aktia Bank position performs unexpectedly, Sampo 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 Sampo Oyj will offset losses from the drop in Sampo Oyj's long position.| Aktia Bank vs. Sampo Oyj A | Aktia Bank vs. Tokmanni Group Oyj | Aktia Bank vs. Nordea Bank Abp | Aktia Bank vs. TietoEVRY Corp |
| Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. UPM Kymmene Oyj | Sampo Oyj vs. Neste Oil 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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