Correlation Between Harvia Oyj and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Harvia Oyj and Fiskars 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 Harvia Oyj and Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvia Oyj and Fiskars Oyj Abp, you can compare the effects of market volatilities on Harvia Oyj and Fiskars 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 Harvia Oyj with a short position of Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvia Oyj and Fiskars Oyj.
Diversification Opportunities for Harvia Oyj and Fiskars Oyj
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harvia and Fiskars is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Harvia Oyj and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp and Harvia 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 Harvia Oyj are associated (or correlated) with Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Harvia Oyj i.e., Harvia Oyj and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Harvia Oyj and Fiskars Oyj
Assuming the 90 days trading horizon Harvia Oyj is expected to generate 1.47 times more return on investment than Fiskars Oyj. However, Harvia Oyj is 1.47 times more volatile than Fiskars Oyj Abp. It trades about -0.09 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about -0.23 per unit of risk. If you would invest 4,540 in Harvia Oyj on September 2, 2024 and sell it today you would lose (160.00) from holding Harvia Oyj or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvia Oyj vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Harvia Oyj |
| Fiskars Oyj Abp |
Harvia Oyj and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvia Oyj and Fiskars Oyj
The main advantage of trading using opposite Harvia Oyj and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvia Oyj position performs unexpectedly, Fiskars 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Harvia Oyj vs. Qt Group Oyj | Harvia Oyj vs. Kamux Suomi Oy | Harvia Oyj vs. Sampo Oyj A | Harvia Oyj vs. Tokmanni Group Oyj |
| Fiskars Oyj vs. Sampo Oyj A | Fiskars Oyj vs. Harvia Oyj | Fiskars Oyj vs. Nordea Bank Abp | Fiskars Oyj vs. Fortum 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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