Correlation Between CapMan Oyj and Viafin Service
Can any of the company-specific risk be diversified away by investing in both CapMan Oyj and Viafin Service 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 CapMan Oyj and Viafin Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapMan Oyj B and Viafin Service Oyj, you can compare the effects of market volatilities on CapMan Oyj and Viafin Service 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 CapMan Oyj with a short position of Viafin Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapMan Oyj and Viafin Service.
Diversification Opportunities for CapMan Oyj and Viafin Service
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between CapMan and Viafin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding CapMan Oyj B and Viafin Service Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viafin Service Oyj and CapMan 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 CapMan Oyj B are associated (or correlated) with Viafin Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viafin Service Oyj has no effect on the direction of CapMan Oyj i.e., CapMan Oyj and Viafin Service go up and down completely randomly.
Pair Corralation between CapMan Oyj and Viafin Service
Assuming the 90 days trading horizon CapMan Oyj B is expected to under-perform the Viafin Service. But the stock apears to be less risky and, when comparing its historical volatility, CapMan Oyj B is 1.02 times less risky than Viafin Service. The stock trades about -0.04 of its potential returns per unit of risk. The Viafin Service Oyj is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,287 in Viafin Service Oyj on August 27, 2024 and sell it today you would earn a total of 623.00 from holding Viafin Service Oyj or generate 48.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapMan Oyj B vs. Viafin Service Oyj
Performance |
| Timeline |
| CapMan Oyj B |
| Viafin Service Oyj |
CapMan Oyj and Viafin Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapMan Oyj and Viafin Service
The main advantage of trading using opposite CapMan Oyj and Viafin Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapMan Oyj position performs unexpectedly, Viafin Service 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 Viafin Service will offset losses from the drop in Viafin Service's long position.| CapMan Oyj vs. Nordea Bank Abp | CapMan Oyj vs. Fortum Oyj | CapMan Oyj vs. UPM Kymmene Oyj | CapMan Oyj vs. Neste Oil Oyj |
| Viafin Service vs. Elecster Oyj A | Viafin Service vs. Vaisala Oyj A | Viafin Service vs. Nokian Renkaat Oyj | Viafin Service vs. CapMan Oyj B |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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