Correlation Between Atria Oyj and Fodelia
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By analyzing existing cross correlation between Atria Oyj A and Fodelia, you can compare the effects of market volatilities on Atria Oyj and Fodelia 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 Atria Oyj with a short position of Fodelia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atria Oyj and Fodelia.
Diversification Opportunities for Atria Oyj and Fodelia
Weak diversification
The 3 months correlation between Atria and Fodelia is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Atria Oyj A and Fodelia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fodelia and Atria 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 Atria Oyj A are associated (or correlated) with Fodelia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fodelia has no effect on the direction of Atria Oyj i.e., Atria Oyj and Fodelia go up and down completely randomly.
Pair Corralation between Atria Oyj and Fodelia
Assuming the 90 days trading horizon Atria Oyj A is expected to generate 0.59 times more return on investment than Fodelia. However, Atria Oyj A is 1.7 times less risky than Fodelia. It trades about -0.21 of its potential returns per unit of risk. Fodelia is currently generating about -0.16 per unit of risk. If you would invest 1,145 in Atria Oyj A on August 28, 2024 and sell it today you would lose (40.00) from holding Atria Oyj A or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atria Oyj A vs. Fodelia
Performance |
| Timeline |
| Atria Oyj A |
| Fodelia |
Atria Oyj and Fodelia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atria Oyj and Fodelia
The main advantage of trading using opposite Atria Oyj and Fodelia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atria Oyj position performs unexpectedly, Fodelia 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 Fodelia will offset losses from the drop in Fodelia's long position.| Atria Oyj vs. Sampo Oyj A | Atria Oyj vs. UPM Kymmene Oyj | Atria Oyj vs. Valmet Oyj | Atria Oyj vs. Elisa 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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