Correlation Between Alma Media and Inderes Oyj
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By analyzing existing cross correlation between Alma Media Oyj and Inderes Oyj, you can compare the effects of market volatilities on Alma Media and Inderes 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 Alma Media with a short position of Inderes Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alma Media and Inderes Oyj.
Diversification Opportunities for Alma Media and Inderes Oyj
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alma and Inderes is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Alma Media Oyj and Inderes Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inderes Oyj and Alma Media 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 Alma Media Oyj are associated (or correlated) with Inderes Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inderes Oyj has no effect on the direction of Alma Media i.e., Alma Media and Inderes Oyj go up and down completely randomly.
Pair Corralation between Alma Media and Inderes Oyj
Assuming the 90 days trading horizon Alma Media Oyj is expected to generate 1.27 times more return on investment than Inderes Oyj. However, Alma Media is 1.27 times more volatile than Inderes Oyj. It trades about 0.11 of its potential returns per unit of risk. Inderes Oyj is currently generating about 0.09 per unit of risk. If you would invest 1,115 in Alma Media Oyj on September 5, 2024 and sell it today you would earn a total of 45.00 from holding Alma Media Oyj or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alma Media Oyj vs. Inderes Oyj
Performance |
| Timeline |
| Alma Media Oyj |
| Inderes Oyj |
Alma Media and Inderes Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alma Media and Inderes Oyj
The main advantage of trading using opposite Alma Media and Inderes Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alma Media position performs unexpectedly, Inderes 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 Inderes Oyj will offset losses from the drop in Inderes Oyj's long position.| Alma Media vs. Tokmanni Group Oyj | Alma Media vs. Kemira Oyj | Alma Media vs. Elisa Oyj | Alma Media vs. Valmet Oyj |
| Inderes Oyj vs. Alma Media Oyj | Inderes Oyj vs. QPR Software Oyj | Inderes Oyj vs. SSH Communications Security | Inderes Oyj vs. Detection Technology OY |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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