Correlation Between CDN IMPERIAL and Altia Oyj
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL and Altia 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 CDN IMPERIAL and Altia Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and Altia Oyj, you can compare the effects of market volatilities on CDN IMPERIAL and Altia 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 CDN IMPERIAL with a short position of Altia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and Altia Oyj.
Diversification Opportunities for CDN IMPERIAL and Altia Oyj
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CDN and Altia is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and Altia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altia Oyj and CDN IMPERIAL 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 CDN IMPERIAL BANK are associated (or correlated) with Altia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altia Oyj has no effect on the direction of CDN IMPERIAL i.e., CDN IMPERIAL and Altia Oyj go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and Altia Oyj
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.6 times more return on investment than Altia Oyj. However, CDN IMPERIAL BANK is 1.68 times less risky than Altia Oyj. It trades about 0.17 of its potential returns per unit of risk. Altia Oyj is currently generating about -0.04 per unit of risk. If you would invest 3,277 in CDN IMPERIAL BANK on September 12, 2024 and sell it today you would earn a total of 3,017 from holding CDN IMPERIAL BANK or generate 92.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. Altia Oyj
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| Altia Oyj |
CDN IMPERIAL and Altia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and Altia Oyj
The main advantage of trading using opposite CDN IMPERIAL and Altia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL position performs unexpectedly, Altia 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 Altia Oyj will offset losses from the drop in Altia Oyj's long position.| CDN IMPERIAL vs. JD SPORTS FASH | CDN IMPERIAL vs. KRAKATAU STEEL B | CDN IMPERIAL vs. BlueScope Steel Limited | CDN IMPERIAL vs. MITSUBISHI STEEL MFG |
| Altia Oyj vs. ALIOR BANK | Altia Oyj vs. TFS FINANCIAL | Altia Oyj vs. CDN IMPERIAL BANK | Altia Oyj vs. ANTA SPORTS PRODUCT |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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