Correlation Between Harvia Oyj and Oma Saastopankki
Can any of the company-specific risk be diversified away by investing in both Harvia Oyj and Oma Saastopankki 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 Oma Saastopankki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvia Oyj and Oma Saastopankki Oyj, you can compare the effects of market volatilities on Harvia Oyj and Oma Saastopankki 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 Oma Saastopankki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvia Oyj and Oma Saastopankki.
Diversification Opportunities for Harvia Oyj and Oma Saastopankki
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harvia and Oma is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Harvia Oyj and Oma Saastopankki Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oma Saastopankki Oyj 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 Oma Saastopankki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oma Saastopankki Oyj has no effect on the direction of Harvia Oyj i.e., Harvia Oyj and Oma Saastopankki go up and down completely randomly.
Pair Corralation between Harvia Oyj and Oma Saastopankki
Assuming the 90 days trading horizon Harvia Oyj is expected to generate 1.33 times more return on investment than Oma Saastopankki. However, Harvia Oyj is 1.33 times more volatile than Oma Saastopankki Oyj. It trades about 0.09 of its potential returns per unit of risk. Oma Saastopankki Oyj is currently generating about -0.04 per unit of risk. If you would invest 1,836 in Harvia Oyj on August 30, 2024 and sell it today you would earn a total of 2,594 from holding Harvia Oyj or generate 141.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvia Oyj vs. Oma Saastopankki Oyj
Performance |
| Timeline |
| Harvia Oyj |
| Oma Saastopankki Oyj |
Harvia Oyj and Oma Saastopankki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvia Oyj and Oma Saastopankki
The main advantage of trading using opposite Harvia Oyj and Oma Saastopankki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvia Oyj position performs unexpectedly, Oma Saastopankki 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 Oma Saastopankki will offset losses from the drop in Oma Saastopankki'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 |
| Oma Saastopankki vs. Kamux Suomi Oy | Oma Saastopankki vs. Harvia Oyj | Oma Saastopankki vs. TietoEVRY Corp | Oma Saastopankki vs. Tokmanni Group 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |