Correlation Between Alandsbanken Abp and Viafin Service
Can any of the company-specific risk be diversified away by investing in both Alandsbanken Abp and Viafin Service 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 Alandsbanken Abp and Viafin Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alandsbanken Abp B and Viafin Service Oyj, you can compare the effects of market volatilities on Alandsbanken Abp and Viafin Service 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 Alandsbanken Abp with a short position of Viafin Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alandsbanken Abp and Viafin Service.
Diversification Opportunities for Alandsbanken Abp and Viafin Service
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alandsbanken and Viafin is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Alandsbanken Abp B and Viafin Service Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viafin Service Oyj and Alandsbanken Abp 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 Alandsbanken Abp B are associated (or correlated) with Viafin Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viafin Service Oyj has no effect on the direction of Alandsbanken Abp i.e., Alandsbanken Abp and Viafin Service go up and down completely randomly.
Pair Corralation between Alandsbanken Abp and Viafin Service
Assuming the 90 days trading horizon Alandsbanken Abp is expected to generate 10.38 times less return on investment than Viafin Service. But when comparing it to its historical volatility, Alandsbanken Abp B is 1.16 times less risky than Viafin Service. It trades about 0.01 of its potential returns per unit of risk. Viafin Service Oyj is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,296 in Viafin Service Oyj on August 30, 2024 and sell it today you would earn a total of 644.00 from holding Viafin Service Oyj or generate 49.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alandsbanken Abp B vs. Viafin Service Oyj
Performance |
| Timeline |
| Alandsbanken Abp B |
| Viafin Service Oyj |
Alandsbanken Abp and Viafin Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alandsbanken Abp and Viafin Service
The main advantage of trading using opposite Alandsbanken Abp and Viafin Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alandsbanken Abp position performs unexpectedly, Viafin Service 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 Viafin Service will offset losses from the drop in Viafin Service's long position.| Alandsbanken Abp vs. Aktia Bank Abp | Alandsbanken Abp vs. Alandsbanken Abp A | Alandsbanken Abp vs. Oma Saastopankki Oyj | Alandsbanken Abp vs. CapMan Oyj B |
| Viafin Service vs. SSH Communications Security | Viafin Service vs. Sotkamo Silver AB | Viafin Service vs. Reka Industrial Oyj | Viafin Service vs. United Bankers 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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