Correlation Between Exel Composites and Admicom Oyj
Can any of the company-specific risk be diversified away by investing in both Exel Composites and Admicom 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 Exel Composites and Admicom Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exel Composites Oyj and Admicom Oyj, you can compare the effects of market volatilities on Exel Composites and Admicom 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 Exel Composites with a short position of Admicom Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exel Composites and Admicom Oyj.
Diversification Opportunities for Exel Composites and Admicom Oyj
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exel and Admicom is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Exel Composites Oyj and Admicom Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admicom Oyj and Exel Composites 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 Exel Composites Oyj are associated (or correlated) with Admicom Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admicom Oyj has no effect on the direction of Exel Composites i.e., Exel Composites and Admicom Oyj go up and down completely randomly.
Pair Corralation between Exel Composites and Admicom Oyj
Assuming the 90 days trading horizon Exel Composites Oyj is expected to under-perform the Admicom Oyj. In addition to that, Exel Composites is 1.31 times more volatile than Admicom Oyj. It trades about -0.35 of its total potential returns per unit of risk. Admicom Oyj is currently generating about -0.05 per unit of volatility. If you would invest 4,920 in Admicom Oyj on September 2, 2024 and sell it today you would lose (115.00) from holding Admicom Oyj or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exel Composites Oyj vs. Admicom Oyj
Performance |
| Timeline |
| Exel Composites Oyj |
| Admicom Oyj |
Exel Composites and Admicom Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exel Composites and Admicom Oyj
The main advantage of trading using opposite Exel Composites and Admicom Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exel Composites position performs unexpectedly, Admicom 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 Admicom Oyj will offset losses from the drop in Admicom Oyj's long position.| Exel Composites vs. Admicom Oyj | Exel Composites vs. Vincit Group Oyj | Exel Composites vs. Harvia Oyj | Exel Composites vs. Remedy Entertainment Oyj |
| Admicom Oyj vs. Tecnotree Oyj | Admicom Oyj vs. Qt Group Oyj | Admicom Oyj vs. Bittium Oyj | Admicom Oyj vs. Harvia 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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