Correlation Between Aktia Bank and Toivo Group
Can any of the company-specific risk be diversified away by investing in both Aktia Bank and Toivo Group 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 Toivo Group 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 Toivo Group Oyj, you can compare the effects of market volatilities on Aktia Bank and Toivo Group 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 Toivo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aktia Bank and Toivo Group.
Diversification Opportunities for Aktia Bank and Toivo Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aktia and Toivo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aktia Bank Abp and Toivo Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toivo Group Oyj 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 Toivo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toivo Group Oyj has no effect on the direction of Aktia Bank i.e., Aktia Bank and Toivo Group go up and down completely randomly.
Pair Corralation between Aktia Bank and Toivo Group
Assuming the 90 days trading horizon Aktia Bank Abp is expected to generate 0.41 times more return on investment than Toivo Group. However, Aktia Bank Abp is 2.44 times less risky than Toivo Group. It trades about 0.21 of its potential returns per unit of risk. Toivo Group Oyj is currently generating about -0.27 per unit of risk. If you would invest 939.00 in Aktia Bank Abp on November 3, 2024 and sell it today you would earn a total of 36.00 from holding Aktia Bank Abp or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aktia Bank Abp vs. Toivo Group Oyj
Performance |
| Timeline |
| Aktia Bank Abp |
| Toivo Group Oyj |
Aktia Bank and Toivo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aktia Bank and Toivo Group
The main advantage of trading using opposite Aktia Bank and Toivo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aktia Bank position performs unexpectedly, Toivo Group 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 Toivo Group will offset losses from the drop in Toivo Group'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 |
| Toivo Group vs. Detection Technology OY | Toivo Group vs. Alandsbanken Abp B | Toivo Group vs. United Bankers Oyj | Toivo Group vs. Aktia Bank Abp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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