Correlation Between Bittium Oyj and Admicom Oyj
Can any of the company-specific risk be diversified away by investing in both Bittium Oyj and Admicom Oyj 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 Bittium Oyj and Admicom Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bittium Oyj and Admicom Oyj, you can compare the effects of market volatilities on Bittium Oyj and Admicom 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 Bittium Oyj with a short position of Admicom Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bittium Oyj and Admicom Oyj.
Diversification Opportunities for Bittium Oyj and Admicom Oyj
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bittium and Admicom is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bittium Oyj and Admicom Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admicom Oyj and Bittium 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 Bittium Oyj are associated (or correlated) with Admicom Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admicom Oyj has no effect on the direction of Bittium Oyj i.e., Bittium Oyj and Admicom Oyj go up and down completely randomly.
Pair Corralation between Bittium Oyj and Admicom Oyj
Assuming the 90 days trading horizon Bittium Oyj is expected to generate 1.23 times more return on investment than Admicom Oyj. However, Bittium Oyj is 1.23 times more volatile than Admicom Oyj. It trades about 0.06 of its potential returns per unit of risk. Admicom Oyj is currently generating about 0.01 per unit of risk. If you would invest 358.00 in Bittium Oyj on September 3, 2024 and sell it today you would earn a total of 310.00 from holding Bittium Oyj or generate 86.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bittium Oyj vs. Admicom Oyj
Performance |
| Timeline |
| Bittium Oyj |
| Admicom Oyj |
Bittium Oyj and Admicom Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bittium Oyj and Admicom Oyj
The main advantage of trading using opposite Bittium Oyj and Admicom Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bittium Oyj position performs unexpectedly, Admicom 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 Admicom Oyj will offset losses from the drop in Admicom Oyj's long position.| Bittium Oyj vs. Revenio Group | Bittium Oyj vs. Outokumpu Oyj | Bittium Oyj vs. Qt Group Oyj | Bittium Oyj vs. CapMan Oyj B |
| Admicom Oyj vs. SSH Communications Security | Admicom Oyj vs. Remedy Entertainment Oyj | Admicom Oyj vs. Detection Technology OY | Admicom Oyj vs. Alma Media 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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