Correlation Between Harvia Oyj and Kamux Suomi
Can any of the company-specific risk be diversified away by investing in both Harvia Oyj and Kamux Suomi 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 Kamux Suomi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvia Oyj and Kamux Suomi Oy, you can compare the effects of market volatilities on Harvia Oyj and Kamux Suomi 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 Kamux Suomi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvia Oyj and Kamux Suomi.
Diversification Opportunities for Harvia Oyj and Kamux Suomi
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harvia and Kamux is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Harvia Oyj and Kamux Suomi Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamux Suomi Oy 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 Kamux Suomi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamux Suomi Oy has no effect on the direction of Harvia Oyj i.e., Harvia Oyj and Kamux Suomi go up and down completely randomly.
Pair Corralation between Harvia Oyj and Kamux Suomi
Assuming the 90 days trading horizon Harvia Oyj is expected to under-perform the Kamux Suomi. But the stock apears to be less risky and, when comparing its historical volatility, Harvia Oyj is 1.04 times less risky than Kamux Suomi. The stock trades about -0.26 of its potential returns per unit of risk. The Kamux Suomi Oy is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Kamux Suomi Oy on August 28, 2024 and sell it today you would lose (21.00) from holding Kamux Suomi Oy or give up 6.0% 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. Kamux Suomi Oy
Performance |
| Timeline |
| Harvia Oyj |
| Kamux Suomi Oy |
Harvia Oyj and Kamux Suomi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvia Oyj and Kamux Suomi
The main advantage of trading using opposite Harvia Oyj and Kamux Suomi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvia Oyj position performs unexpectedly, Kamux Suomi 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 Kamux Suomi will offset losses from the drop in Kamux Suomi'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 |
| Kamux Suomi vs. Harvia Oyj | Kamux Suomi vs. Qt Group Oyj | Kamux Suomi vs. Tokmanni Group Oyj | Kamux Suomi vs. Sampo Oyj A |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |