Correlation Between Etteplan Oyj and Aiforia Technologies
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By analyzing existing cross correlation between Etteplan Oyj and Aiforia Technologies Oyj, you can compare the effects of market volatilities on Etteplan Oyj and Aiforia Technologies 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 Etteplan Oyj with a short position of Aiforia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etteplan Oyj and Aiforia Technologies.
Diversification Opportunities for Etteplan Oyj and Aiforia Technologies
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Etteplan and Aiforia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Etteplan Oyj and Aiforia Technologies Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aiforia Technologies Oyj and Etteplan 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 Etteplan Oyj are associated (or correlated) with Aiforia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aiforia Technologies Oyj has no effect on the direction of Etteplan Oyj i.e., Etteplan Oyj and Aiforia Technologies go up and down completely randomly.
Pair Corralation between Etteplan Oyj and Aiforia Technologies
Assuming the 90 days trading horizon Etteplan Oyj is expected to generate 0.39 times more return on investment than Aiforia Technologies. However, Etteplan Oyj is 2.59 times less risky than Aiforia Technologies. It trades about -0.05 of its potential returns per unit of risk. Aiforia Technologies Oyj is currently generating about -0.11 per unit of risk. If you would invest 1,030 in Etteplan Oyj on September 14, 2024 and sell it today you would lose (10.00) from holding Etteplan Oyj or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Etteplan Oyj vs. Aiforia Technologies Oyj
Performance |
| Timeline |
| Etteplan Oyj |
| Aiforia Technologies Oyj |
Etteplan Oyj and Aiforia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Etteplan Oyj and Aiforia Technologies
The main advantage of trading using opposite Etteplan Oyj and Aiforia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Etteplan Oyj position performs unexpectedly, Aiforia Technologies 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 Aiforia Technologies will offset losses from the drop in Aiforia Technologies' long position.| Etteplan Oyj vs. QPR Software Oyj | Etteplan Oyj vs. Sotkamo Silver AB | Etteplan Oyj vs. Trainers House Oyj | Etteplan Oyj vs. Alma Media Oyj |
| Aiforia Technologies vs. Kamux Suomi Oy | Aiforia Technologies vs. Harvia Oyj | Aiforia Technologies vs. Qt Group Oyj | Aiforia Technologies vs. Tecnotree 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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