Correlation Between Evli Pankki and Investors House
Can any of the company-specific risk be diversified away by investing in both Evli Pankki and Investors House 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 Investors House 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 Investors House, you can compare the effects of market volatilities on Evli Pankki and Investors House 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 Investors House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evli Pankki and Investors House.
Diversification Opportunities for Evli Pankki and Investors House
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evli and Investors is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Evli Pankki Oyj and Investors House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investors House 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 Investors House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investors House has no effect on the direction of Evli Pankki i.e., Evli Pankki and Investors House go up and down completely randomly.
Pair Corralation between Evli Pankki and Investors House
Assuming the 90 days trading horizon Evli Pankki Oyj is expected to under-perform the Investors House. But the stock apears to be less risky and, when comparing its historical volatility, Evli Pankki Oyj is 1.86 times less risky than Investors House. The stock trades about -0.31 of its potential returns per unit of risk. The Investors House is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Investors House on August 31, 2024 and sell it today you would lose (12.00) from holding Investors House or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evli Pankki Oyj vs. Investors House
Performance |
| Timeline |
| Evli Pankki Oyj |
| Investors House |
Evli Pankki and Investors House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evli Pankki and Investors House
The main advantage of trading using opposite Evli Pankki and Investors House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evli Pankki position performs unexpectedly, Investors House 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 Investors House will offset losses from the drop in Investors House'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 |
| Investors House vs. Taaleri Oyj | Investors House vs. CapMan Oyj B | Investors House vs. Evli Pankki Oyj | Investors House vs. Citycon 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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