Correlation Between EAST SIDE and NESTE OYJ
Can any of the company-specific risk be diversified away by investing in both EAST SIDE and NESTE 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 EAST SIDE and NESTE OYJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAST SIDE GAMES and NESTE OYJ UNSPADR, you can compare the effects of market volatilities on EAST SIDE and NESTE 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 EAST SIDE with a short position of NESTE OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and NESTE OYJ.
Diversification Opportunities for EAST SIDE and NESTE OYJ
Very weak diversification
The 3 months correlation between EAST and NESTE is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR and EAST SIDE 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 EAST SIDE GAMES are associated (or correlated) with NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of EAST SIDE i.e., EAST SIDE and NESTE OYJ go up and down completely randomly.
Pair Corralation between EAST SIDE and NESTE OYJ
Assuming the 90 days horizon EAST SIDE GAMES is expected to generate 2.51 times more return on investment than NESTE OYJ. However, EAST SIDE is 2.51 times more volatile than NESTE OYJ UNSPADR. It trades about 0.03 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about -0.08 per unit of risk. If you would invest 39.00 in EAST SIDE GAMES on September 19, 2024 and sell it today you would lose (5.00) from holding EAST SIDE GAMES or give up 12.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
EAST SIDE GAMES vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
| EAST SIDE GAMES |
| NESTE OYJ UNSPADR |
EAST SIDE and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAST SIDE and NESTE OYJ
The main advantage of trading using opposite EAST SIDE and NESTE OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE position performs unexpectedly, NESTE 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 NESTE OYJ will offset losses from the drop in NESTE OYJ's long position.| EAST SIDE vs. NEXON Co | EAST SIDE vs. Take Two Interactive Software | EAST SIDE vs. Superior Plus Corp | EAST SIDE vs. SIVERS SEMICONDUCTORS AB |
| NESTE OYJ vs. Hochschild Mining plc | NESTE OYJ vs. International Game Technology | NESTE OYJ vs. EAST SIDE GAMES | NESTE OYJ vs. HOCHSCHILD MINING |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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