Correlation Between Evli Pankki and CapMan Oyj
Can any of the company-specific risk be diversified away by investing in both Evli Pankki and CapMan 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 Evli Pankki and CapMan Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evli Pankki Oyj and CapMan Oyj B, you can compare the effects of market volatilities on Evli Pankki and CapMan 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 Evli Pankki with a short position of CapMan Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evli Pankki and CapMan Oyj.
Diversification Opportunities for Evli Pankki and CapMan Oyj
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evli and CapMan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Evli Pankki Oyj and CapMan Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapMan Oyj B and Evli Pankki 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 Evli Pankki Oyj are associated (or correlated) with CapMan Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapMan Oyj B has no effect on the direction of Evli Pankki i.e., Evli Pankki and CapMan Oyj go up and down completely randomly.
Pair Corralation between Evli Pankki and CapMan Oyj
Assuming the 90 days trading horizon Evli Pankki Oyj is expected to generate 0.82 times more return on investment than CapMan Oyj. However, Evli Pankki Oyj is 1.23 times less risky than CapMan Oyj. It trades about 0.0 of its potential returns per unit of risk. CapMan Oyj B is currently generating about -0.05 per unit of risk. If you would invest 1,888 in Evli Pankki Oyj on September 12, 2024 and sell it today you would lose (98.00) from holding Evli Pankki Oyj or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evli Pankki Oyj vs. CapMan Oyj B
Performance |
| Timeline |
| Evli Pankki Oyj |
| CapMan Oyj B |
Evli Pankki and CapMan Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evli Pankki and CapMan Oyj
The main advantage of trading using opposite Evli Pankki and CapMan Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evli Pankki position performs unexpectedly, CapMan 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 CapMan Oyj will offset losses from the drop in CapMan Oyj's long position.| Evli Pankki vs. CapMan Oyj B | Evli Pankki vs. Taaleri Oyj | Evli Pankki vs. Aktia Bank Abp | Evli Pankki vs. Tokmanni Group Oyj |
| CapMan Oyj vs. Tecnotree Oyj | CapMan Oyj vs. Aspo Oyj | CapMan Oyj vs. Finnair Oyj | CapMan Oyj vs. Tulikivi Oyj A |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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