Correlation Between Citycon Oyj and Kesko Oyj
Can any of the company-specific risk be diversified away by investing in both Citycon Oyj and Kesko 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 Citycon Oyj and Kesko Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citycon Oyj and Kesko Oyj, you can compare the effects of market volatilities on Citycon Oyj and Kesko 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 Citycon Oyj with a short position of Kesko Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citycon Oyj and Kesko Oyj.
Diversification Opportunities for Citycon Oyj and Kesko Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citycon and Kesko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citycon Oyj and Kesko Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kesko Oyj and Citycon 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 Citycon Oyj are associated (or correlated) with Kesko Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kesko Oyj has no effect on the direction of Citycon Oyj i.e., Citycon Oyj and Kesko Oyj go up and down completely randomly.
Pair Corralation between Citycon Oyj and Kesko Oyj
If you would invest (100.00) in Citycon Oyj on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Citycon 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 |
Citycon Oyj vs. Kesko Oyj
Performance |
| Timeline |
| Citycon Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kesko Oyj |
Citycon Oyj and Kesko Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citycon Oyj and Kesko Oyj
The main advantage of trading using opposite Citycon Oyj and Kesko Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citycon Oyj position performs unexpectedly, Kesko 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 Kesko Oyj will offset losses from the drop in Kesko Oyj's long position.| Citycon Oyj vs. Sampo Oyj A | Citycon Oyj vs. Tokmanni Group Oyj | Citycon Oyj vs. Nordea Bank Abp | Citycon Oyj vs. Telia Company AB |
| Kesko Oyj vs. Sampo Oyj A | Kesko Oyj vs. UPM Kymmene Oyj | Kesko Oyj vs. Valmet Oyj | Kesko Oyj vs. Elisa 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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