Correlation Between Cass Information and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Cass Information and Fiskars 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 Cass Information and Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and Fiskars Oyj Abp, you can compare the effects of market volatilities on Cass Information and Fiskars 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 Cass Information with a short position of Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and Fiskars Oyj.
Diversification Opportunities for Cass Information and Fiskars Oyj
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cass and Fiskars is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp and Cass Information 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 Cass Information Systems are associated (or correlated) with Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Cass Information i.e., Cass Information and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Cass Information and Fiskars Oyj
Assuming the 90 days horizon Cass Information Systems is expected to generate 1.18 times more return on investment than Fiskars Oyj. However, Cass Information is 1.18 times more volatile than Fiskars Oyj Abp. It trades about 0.02 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about 0.01 per unit of risk. If you would invest 3,936 in Cass Information Systems on September 5, 2024 and sell it today you would earn a total of 313.00 from holding Cass Information Systems or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cass Information Systems vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Cass Information Systems |
| Fiskars Oyj Abp |
Cass Information and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and Fiskars Oyj
The main advantage of trading using opposite Cass Information and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, Fiskars 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Cass Information vs. Elis SA | Cass Information vs. Superior Plus Corp | Cass Information vs. NMI Holdings | Cass Information vs. Origin Agritech |
| Fiskars Oyj vs. X FAB Silicon Foundries | Fiskars Oyj vs. Align Technology | Fiskars Oyj vs. DOCDATA | Fiskars Oyj vs. Cass Information Systems |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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