Correlation Between Aspo Oyj and Spinnova
Can any of the company-specific risk be diversified away by investing in both Aspo Oyj and Spinnova 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 Aspo Oyj and Spinnova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspo Oyj and Spinnova Oy, you can compare the effects of market volatilities on Aspo Oyj and Spinnova 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 Aspo Oyj with a short position of Spinnova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspo Oyj and Spinnova.
Diversification Opportunities for Aspo Oyj and Spinnova
Very poor diversification
The 3 months correlation between Aspo and Spinnova is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aspo Oyj and Spinnova Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnova Oy and Aspo Oyj 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 Aspo Oyj are associated (or correlated) with Spinnova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnova Oy has no effect on the direction of Aspo Oyj i.e., Aspo Oyj and Spinnova go up and down completely randomly.
Pair Corralation between Aspo Oyj and Spinnova
Assuming the 90 days trading horizon Aspo Oyj is expected to generate 0.3 times more return on investment than Spinnova. However, Aspo Oyj is 3.28 times less risky than Spinnova. It trades about -0.59 of its potential returns per unit of risk. Spinnova Oy is currently generating about -0.54 per unit of risk. If you would invest 584.00 in Aspo Oyj on August 27, 2024 and sell it today you would lose (78.00) from holding Aspo Oyj or give up 13.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspo Oyj vs. Spinnova Oy
Performance |
| Timeline |
| Aspo Oyj |
| Spinnova Oy |
Aspo Oyj and Spinnova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspo Oyj and Spinnova
The main advantage of trading using opposite Aspo Oyj and Spinnova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspo Oyj position performs unexpectedly, Spinnova 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 Spinnova will offset losses from the drop in Spinnova's long position.| Aspo Oyj vs. Tokmanni Group Oyj | Aspo Oyj vs. Kemira Oyj | Aspo Oyj vs. TietoEVRY Corp | Aspo Oyj vs. CapMan Oyj B |
| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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