Correlation Between Elecster Oyj and PunaMusta Media
Can any of the company-specific risk be diversified away by investing in both Elecster Oyj and PunaMusta Media 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 Elecster Oyj and PunaMusta Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elecster Oyj A and PunaMusta Media Oyj, you can compare the effects of market volatilities on Elecster Oyj and PunaMusta Media 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 Elecster Oyj with a short position of PunaMusta Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elecster Oyj and PunaMusta Media.
Diversification Opportunities for Elecster Oyj and PunaMusta Media
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Elecster and PunaMusta is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Elecster Oyj A and PunaMusta Media Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PunaMusta Media Oyj and Elecster 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 Elecster Oyj A are associated (or correlated) with PunaMusta Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PunaMusta Media Oyj has no effect on the direction of Elecster Oyj i.e., Elecster Oyj and PunaMusta Media go up and down completely randomly.
Pair Corralation between Elecster Oyj and PunaMusta Media
Assuming the 90 days trading horizon Elecster Oyj A is expected to generate 5.02 times more return on investment than PunaMusta Media. However, Elecster Oyj is 5.02 times more volatile than PunaMusta Media Oyj. It trades about -0.07 of its potential returns per unit of risk. PunaMusta Media Oyj is currently generating about -0.58 per unit of risk. If you would invest 358.00 in Elecster Oyj A on September 3, 2024 and sell it today you would lose (26.00) from holding Elecster Oyj A or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 14.29% |
| Values | Daily Returns |
Elecster Oyj A vs. PunaMusta Media Oyj
Performance |
| Timeline |
| Elecster Oyj A |
| PunaMusta Media Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elecster Oyj and PunaMusta Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elecster Oyj and PunaMusta Media
The main advantage of trading using opposite Elecster Oyj and PunaMusta Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elecster Oyj position performs unexpectedly, PunaMusta Media 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 PunaMusta Media will offset losses from the drop in PunaMusta Media's long position.| Elecster Oyj vs. Telefonaktiebolaget LM Ericsson | Elecster Oyj vs. Telia Company AB | Elecster Oyj vs. SSAB AB ser | Elecster Oyj vs. SSAB AB ser |
| PunaMusta Media vs. Raute Oyj | PunaMusta Media vs. Suominen Oyj | PunaMusta Media vs. Elecster Oyj A | PunaMusta Media vs. Siili Solutions 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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