Correlation Between Harvia Oyj and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Harvia Oyj and Sampo 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 Sampo 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 Sampo Oyj A, you can compare the effects of market volatilities on Harvia Oyj and Sampo 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 Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvia Oyj and Sampo Oyj.
Diversification Opportunities for Harvia Oyj and Sampo Oyj
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Harvia and Sampo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Harvia Oyj and Sampo Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj A 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj A has no effect on the direction of Harvia Oyj i.e., Harvia Oyj and Sampo Oyj go up and down completely randomly.
Pair Corralation between Harvia Oyj and Sampo Oyj
Assuming the 90 days trading horizon Harvia Oyj is expected to under-perform the Sampo Oyj. In addition to that, Harvia Oyj is 2.0 times more volatile than Sampo Oyj A. It trades about -0.26 of its total potential returns per unit of risk. Sampo Oyj A is currently generating about -0.13 per unit of volatility. If you would invest 4,093 in Sampo Oyj A on August 28, 2024 and sell it today you would lose (90.00) from holding Sampo Oyj A or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvia Oyj vs. Sampo Oyj A
Performance |
| Timeline |
| Harvia Oyj |
| Sampo Oyj A |
Harvia Oyj and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvia Oyj and Sampo Oyj
The main advantage of trading using opposite Harvia Oyj and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvia Oyj position performs unexpectedly, Sampo 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 Sampo Oyj will offset losses from the drop in Sampo 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 |
| Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. UPM Kymmene Oyj | Sampo Oyj vs. Neste Oil 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |