Correlation Between F SECURE and Detection Technology
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By analyzing existing cross correlation between F SECURE OYJ and Detection Technology OY, you can compare the effects of market volatilities on F SECURE and Detection Technology 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 F SECURE with a short position of Detection Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of F SECURE and Detection Technology.
Diversification Opportunities for F SECURE and Detection Technology
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FSECURE and Detection is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding F SECURE OYJ and Detection Technology OY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detection Technology and F SECURE 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 F SECURE OYJ are associated (or correlated) with Detection Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detection Technology has no effect on the direction of F SECURE i.e., F SECURE and Detection Technology go up and down completely randomly.
Pair Corralation between F SECURE and Detection Technology
Assuming the 90 days trading horizon F SECURE OYJ is expected to under-perform the Detection Technology. But the stock apears to be less risky and, when comparing its historical volatility, F SECURE OYJ is 1.01 times less risky than Detection Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Detection Technology OY is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,801 in Detection Technology OY on August 24, 2024 and sell it today you would lose (411.00) from holding Detection Technology OY or give up 22.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
F SECURE OYJ vs. Detection Technology OY
Performance |
| Timeline |
| F SECURE OYJ |
| Detection Technology |
F SECURE and Detection Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F SECURE and Detection Technology
The main advantage of trading using opposite F SECURE and Detection Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F SECURE position performs unexpectedly, Detection Technology 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 Detection Technology will offset losses from the drop in Detection Technology's long position.| F SECURE vs. Vaisala Oyj A | F SECURE vs. Nokian Renkaat Oyj | F SECURE vs. CapMan Oyj B | F SECURE vs. HKFoods Oyj A |
| Detection Technology vs. Tecnotree Oyj | Detection Technology vs. Qt Group Oyj | Detection Technology vs. Bittium Oyj | Detection Technology 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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