Correlation Between Glaston Oyj and Atria Oyj
Can any of the company-specific risk be diversified away by investing in both Glaston Oyj and Atria 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 Glaston Oyj and Atria Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaston Oyj Abp and Atria Oyj A, you can compare the effects of market volatilities on Glaston Oyj and Atria 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 Glaston Oyj with a short position of Atria Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaston Oyj and Atria Oyj.
Diversification Opportunities for Glaston Oyj and Atria Oyj
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Glaston and Atria is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Glaston Oyj Abp and Atria Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atria Oyj A and Glaston 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 Glaston Oyj Abp are associated (or correlated) with Atria Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atria Oyj A has no effect on the direction of Glaston Oyj i.e., Glaston Oyj and Atria Oyj go up and down completely randomly.
Pair Corralation between Glaston Oyj and Atria Oyj
Assuming the 90 days trading horizon Glaston Oyj Abp is expected to under-perform the Atria Oyj. In addition to that, Glaston Oyj is 1.4 times more volatile than Atria Oyj A. It trades about -0.02 of its total potential returns per unit of risk. Atria Oyj A is currently generating about 0.02 per unit of volatility. If you would invest 1,037 in Atria Oyj A on August 31, 2024 and sell it today you would earn a total of 58.00 from holding Atria Oyj A or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaston Oyj Abp vs. Atria Oyj A
Performance |
| Timeline |
| Glaston Oyj Abp |
| Atria Oyj A |
Glaston Oyj and Atria Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaston Oyj and Atria Oyj
The main advantage of trading using opposite Glaston Oyj and Atria Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaston Oyj position performs unexpectedly, Atria 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 Atria Oyj will offset losses from the drop in Atria Oyj's long position.| Glaston Oyj vs. Bittium Oyj | Glaston Oyj vs. Tecnotree Oyj | Glaston Oyj vs. Exel Composites Oyj | Glaston Oyj vs. Tokmanni Group Oyj |
| Atria Oyj vs. Tokmanni Group Oyj | Atria Oyj vs. Kemira Oyj | Atria Oyj vs. Telia Company AB | Atria Oyj vs. Outokumpu 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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