Correlation Between Elecster Oyj and Vaisala Oyj
Can any of the company-specific risk be diversified away by investing in both Elecster Oyj and Vaisala 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 Elecster Oyj and Vaisala Oyj 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 Vaisala Oyj A, you can compare the effects of market volatilities on Elecster Oyj and Vaisala 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 Elecster Oyj with a short position of Vaisala Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elecster Oyj and Vaisala Oyj.
Diversification Opportunities for Elecster Oyj and Vaisala Oyj
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elecster and Vaisala is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Elecster Oyj A and Vaisala Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaisala Oyj A 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 Vaisala Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaisala Oyj A has no effect on the direction of Elecster Oyj i.e., Elecster Oyj and Vaisala Oyj go up and down completely randomly.
Pair Corralation between Elecster Oyj and Vaisala Oyj
Assuming the 90 days trading horizon Elecster Oyj A is expected to under-perform the Vaisala Oyj. In addition to that, Elecster Oyj is 2.19 times more volatile than Vaisala Oyj A. It trades about -0.08 of its total potential returns per unit of risk. Vaisala Oyj A is currently generating about 0.09 per unit of volatility. If you would invest 4,595 in Vaisala Oyj A on August 26, 2024 and sell it today you would earn a total of 155.00 from holding Vaisala Oyj A or generate 3.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elecster Oyj A vs. Vaisala Oyj A
Performance |
| Timeline |
| Elecster Oyj A |
| Vaisala Oyj A |
Elecster Oyj and Vaisala Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elecster Oyj and Vaisala Oyj
The main advantage of trading using opposite Elecster Oyj and Vaisala Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elecster Oyj position performs unexpectedly, Vaisala 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 Vaisala Oyj will offset losses from the drop in Vaisala Oyj's long position.| Elecster Oyj vs. Aktia Bank Abp | Elecster Oyj vs. Alandsbanken Abp B | Elecster Oyj vs. Alandsbanken Abp A | Elecster Oyj vs. Sampo Oyj A |
| Vaisala Oyj vs. Innofactor Oyj | Vaisala Oyj vs. CapMan Oyj B | Vaisala Oyj vs. HKFoods Oyj A | Vaisala Oyj vs. KONE 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |