Correlation Between F SECURE and Sotkamo Silver
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By analyzing existing cross correlation between F SECURE OYJ and Sotkamo Silver AB, you can compare the effects of market volatilities on F SECURE and Sotkamo Silver 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 Sotkamo Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of F SECURE and Sotkamo Silver.
Diversification Opportunities for F SECURE and Sotkamo Silver
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FSECURE and Sotkamo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding F SECURE OYJ and Sotkamo Silver AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sotkamo Silver AB 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 Sotkamo Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sotkamo Silver AB has no effect on the direction of F SECURE i.e., F SECURE and Sotkamo Silver go up and down completely randomly.
Pair Corralation between F SECURE and Sotkamo Silver
Assuming the 90 days trading horizon F SECURE OYJ is expected to under-perform the Sotkamo Silver. But the stock apears to be less risky and, when comparing its historical volatility, F SECURE OYJ is 1.75 times less risky than Sotkamo Silver. The stock trades about -0.02 of its potential returns per unit of risk. The Sotkamo Silver AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9.20 in Sotkamo Silver AB on September 12, 2024 and sell it today you would earn a total of 0.06 from holding Sotkamo Silver AB or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
F SECURE OYJ vs. Sotkamo Silver AB
Performance |
| Timeline |
| F SECURE OYJ |
| Sotkamo Silver AB |
F SECURE and Sotkamo Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with F SECURE and Sotkamo Silver
The main advantage of trading using opposite F SECURE and Sotkamo Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if F SECURE position performs unexpectedly, Sotkamo Silver 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 Sotkamo Silver will offset losses from the drop in Sotkamo Silver's long position.The idea behind F SECURE OYJ and Sotkamo Silver AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sotkamo Silver vs. Outokumpu Oyj | Sotkamo Silver vs. SSAB AB ser | Sotkamo Silver vs. Telia Company AB | Sotkamo Silver vs. Wartsila Oyj Abp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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