Correlation Between Fortum Oyj and Fodelia
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By analyzing existing cross correlation between Fortum Oyj and Fodelia, you can compare the effects of market volatilities on Fortum Oyj and Fodelia 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 Fortum Oyj with a short position of Fodelia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortum Oyj and Fodelia.
Diversification Opportunities for Fortum Oyj and Fodelia
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortum and Fodelia is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fortum Oyj and Fodelia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fodelia and Fortum 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 Fortum Oyj are associated (or correlated) with Fodelia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fodelia has no effect on the direction of Fortum Oyj i.e., Fortum Oyj and Fodelia go up and down completely randomly.
Pair Corralation between Fortum Oyj and Fodelia
Assuming the 90 days trading horizon Fortum Oyj is expected to generate 0.98 times more return on investment than Fodelia. However, Fortum Oyj is 1.02 times less risky than Fodelia. It trades about 0.03 of its potential returns per unit of risk. Fodelia is currently generating about -0.01 per unit of risk. If you would invest 1,423 in Fortum Oyj on August 27, 2024 and sell it today you would earn a total of 25.00 from holding Fortum Oyj or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortum Oyj vs. Fodelia
Performance |
| Timeline |
| Fortum Oyj |
| Fodelia |
Fortum Oyj and Fodelia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortum Oyj and Fodelia
The main advantage of trading using opposite Fortum Oyj and Fodelia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortum Oyj position performs unexpectedly, Fodelia 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 Fodelia will offset losses from the drop in Fodelia's long position.| Fortum Oyj vs. Terveystalo Oy | Fortum Oyj vs. Investors House | Fortum Oyj vs. Fiskars Oyj Abp | Fortum Oyj vs. Tokmanni Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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