Correlation Between Boreo Oyj and Neste Oil
Can any of the company-specific risk be diversified away by investing in both Boreo Oyj and Neste Oil 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 Boreo Oyj and Neste Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boreo Oyj and Neste Oil Oyj, you can compare the effects of market volatilities on Boreo Oyj and Neste Oil 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 Boreo Oyj with a short position of Neste Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boreo Oyj and Neste Oil.
Diversification Opportunities for Boreo Oyj and Neste Oil
Pay attention - limited upside
The 3 months correlation between Boreo and Neste is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boreo Oyj and Neste Oil Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neste Oil Oyj and Boreo 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 Boreo Oyj are associated (or correlated) with Neste Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neste Oil Oyj has no effect on the direction of Boreo Oyj i.e., Boreo Oyj and Neste Oil go up and down completely randomly.
Pair Corralation between Boreo Oyj and Neste Oil
If you would invest (100.00) in Boreo Oyj on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Boreo Oyj or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boreo Oyj vs. Neste Oil Oyj
Performance |
| Timeline |
| Boreo Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Neste Oil Oyj |
Boreo Oyj and Neste Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boreo Oyj and Neste Oil
The main advantage of trading using opposite Boreo Oyj and Neste Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boreo Oyj position performs unexpectedly, Neste Oil 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 Oil will offset losses from the drop in Neste Oil's long position.| Boreo Oyj vs. Harvia Oyj | Boreo Oyj vs. Tecnotree Oyj | Boreo Oyj vs. Qt Group Oyj | Boreo Oyj vs. Kamux Suomi Oy |
| Neste Oil vs. Fortum Oyj | Neste Oil vs. Sampo Oyj A | Neste Oil vs. Nordea Bank Abp | Neste Oil vs. UPM Kymmene 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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