Correlation Between Bittium Oyj and Olvi Oyj
Can any of the company-specific risk be diversified away by investing in both Bittium Oyj and Olvi 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 Olvi 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 Olvi Oyj A, you can compare the effects of market volatilities on Bittium Oyj and Olvi 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 Olvi Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bittium Oyj and Olvi Oyj.
Diversification Opportunities for Bittium Oyj and Olvi Oyj
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bittium and Olvi is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bittium Oyj and Olvi Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olvi Oyj A 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 Olvi Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olvi Oyj A has no effect on the direction of Bittium Oyj i.e., Bittium Oyj and Olvi Oyj go up and down completely randomly.
Pair Corralation between Bittium Oyj and Olvi Oyj
Assuming the 90 days trading horizon Bittium Oyj is expected to generate 3.23 times more return on investment than Olvi Oyj. However, Bittium Oyj is 3.23 times more volatile than Olvi Oyj A. It trades about 0.11 of its potential returns per unit of risk. Olvi Oyj A is currently generating about -0.23 per unit of risk. If you would invest 630.00 in Bittium Oyj on September 1, 2024 and sell it today you would earn a total of 38.00 from holding Bittium Oyj or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bittium Oyj vs. Olvi Oyj A
Performance |
| Timeline |
| Bittium Oyj |
| Olvi Oyj A |
Bittium Oyj and Olvi Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bittium Oyj and Olvi Oyj
The main advantage of trading using opposite Bittium Oyj and Olvi Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bittium Oyj position performs unexpectedly, Olvi 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 Olvi Oyj will offset losses from the drop in Olvi 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 |
| Olvi Oyj vs. Kemira Oyj | Olvi Oyj vs. Tokmanni Group Oyj | Olvi Oyj vs. Lassila Tikanoja Oyj | Olvi Oyj vs. Bittium 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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