Correlation Between Elisa Oyj and Scanfil Oyj
Can any of the company-specific risk be diversified away by investing in both Elisa Oyj and Scanfil 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 Elisa Oyj and Scanfil Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elisa Oyj and Scanfil Oyj, you can compare the effects of market volatilities on Elisa Oyj and Scanfil 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 Elisa Oyj with a short position of Scanfil Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elisa Oyj and Scanfil Oyj.
Diversification Opportunities for Elisa Oyj and Scanfil Oyj
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elisa and Scanfil is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Elisa Oyj and Scanfil Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scanfil Oyj and Elisa 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 Elisa Oyj are associated (or correlated) with Scanfil Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scanfil Oyj has no effect on the direction of Elisa Oyj i.e., Elisa Oyj and Scanfil Oyj go up and down completely randomly.
Pair Corralation between Elisa Oyj and Scanfil Oyj
Assuming the 90 days trading horizon Elisa Oyj is expected to under-perform the Scanfil Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Elisa Oyj is 1.16 times less risky than Scanfil Oyj. The stock trades about -0.15 of its potential returns per unit of risk. The Scanfil Oyj is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 728.00 in Scanfil Oyj on August 26, 2024 and sell it today you would earn a total of 13.00 from holding Scanfil Oyj or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elisa Oyj vs. Scanfil Oyj
Performance |
| Timeline |
| Elisa Oyj |
| Scanfil Oyj |
Elisa Oyj and Scanfil Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elisa Oyj and Scanfil Oyj
The main advantage of trading using opposite Elisa Oyj and Scanfil Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elisa Oyj position performs unexpectedly, Scanfil 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 Scanfil Oyj will offset losses from the drop in Scanfil Oyj's long position.| Elisa Oyj vs. Kesko Oyj | Elisa Oyj vs. Sampo Oyj A | Elisa Oyj vs. UPM Kymmene Oyj | Elisa Oyj vs. Orion Oyj B |
| Scanfil Oyj vs. Innofactor Oyj | Scanfil Oyj vs. CapMan Oyj B | Scanfil Oyj vs. HKFoods Oyj A | Scanfil 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |