Correlation Between Coloseum Holding and Nokia Oyj
Can any of the company-specific risk be diversified away by investing in both Coloseum Holding and Nokia 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 Coloseum Holding and Nokia Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coloseum Holding as and Nokia Oyj, you can compare the effects of market volatilities on Coloseum Holding and Nokia 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 Coloseum Holding with a short position of Nokia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloseum Holding and Nokia Oyj.
Diversification Opportunities for Coloseum Holding and Nokia Oyj
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coloseum and Nokia is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Coloseum Holding as and Nokia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia Oyj and Coloseum Holding 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 Coloseum Holding as are associated (or correlated) with Nokia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia Oyj has no effect on the direction of Coloseum Holding i.e., Coloseum Holding and Nokia Oyj go up and down completely randomly.
Pair Corralation between Coloseum Holding and Nokia Oyj
Assuming the 90 days trading horizon Coloseum Holding as is expected to under-perform the Nokia Oyj. In addition to that, Coloseum Holding is 2.9 times more volatile than Nokia Oyj. It trades about -0.01 of its total potential returns per unit of risk. Nokia Oyj is currently generating about 0.0 per unit of volatility. If you would invest 10,920 in Nokia Oyj on August 28, 2024 and sell it today you would lose (959.00) from holding Nokia Oyj or give up 8.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Coloseum Holding as vs. Nokia Oyj
Performance |
| Timeline |
| Coloseum Holding |
| Nokia Oyj |
Coloseum Holding and Nokia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloseum Holding and Nokia Oyj
The main advantage of trading using opposite Coloseum Holding and Nokia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloseum Holding position performs unexpectedly, Nokia 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 Nokia Oyj will offset losses from the drop in Nokia Oyj's long position.| Coloseum Holding vs. Volkswagen AG | Coloseum Holding vs. GEVORKYAN as | Coloseum Holding vs. Philip Morris CR | Coloseum Holding vs. Prabos Plus as |
| Nokia Oyj vs. Raiffeisen Bank International | Nokia Oyj vs. JT ARCH INVESTMENTS | Nokia Oyj vs. Moneta Money Bank | Nokia Oyj vs. UNIQA Insurance Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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