Correlation Between Nightingale Health and Asuntosalkku Oyj
Can any of the company-specific risk be diversified away by investing in both Nightingale Health and Asuntosalkku 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 Nightingale Health and Asuntosalkku Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nightingale Health Oyj and Asuntosalkku Oyj, you can compare the effects of market volatilities on Nightingale Health and Asuntosalkku 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 Nightingale Health with a short position of Asuntosalkku Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nightingale Health and Asuntosalkku Oyj.
Diversification Opportunities for Nightingale Health and Asuntosalkku Oyj
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nightingale and Asuntosalkku is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nightingale Health Oyj and Asuntosalkku Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuntosalkku Oyj and Nightingale Health 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 Nightingale Health Oyj are associated (or correlated) with Asuntosalkku Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuntosalkku Oyj has no effect on the direction of Nightingale Health i.e., Nightingale Health and Asuntosalkku Oyj go up and down completely randomly.
Pair Corralation between Nightingale Health and Asuntosalkku Oyj
Assuming the 90 days trading horizon Nightingale Health Oyj is expected to generate 2.4 times more return on investment than Asuntosalkku Oyj. However, Nightingale Health is 2.4 times more volatile than Asuntosalkku Oyj. It trades about -0.01 of its potential returns per unit of risk. Asuntosalkku Oyj is currently generating about -0.07 per unit of risk. If you would invest 287.00 in Nightingale Health Oyj on August 24, 2024 and sell it today you would lose (5.00) from holding Nightingale Health Oyj or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nightingale Health Oyj vs. Asuntosalkku Oyj
Performance |
| Timeline |
| Nightingale Health Oyj |
| Asuntosalkku Oyj |
Nightingale Health and Asuntosalkku Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nightingale Health and Asuntosalkku Oyj
The main advantage of trading using opposite Nightingale Health and Asuntosalkku Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nightingale Health position performs unexpectedly, Asuntosalkku 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 Asuntosalkku Oyj will offset losses from the drop in Asuntosalkku Oyj's long position.| Nightingale Health vs. Vaisala Oyj A | Nightingale Health vs. CapMan Oyj B | Nightingale Health vs. HKFoods Oyj A | Nightingale Health vs. KONE Oyj |
| Asuntosalkku Oyj vs. Nightingale Health Oyj | Asuntosalkku Oyj vs. Aiforia Technologies Oyj | Asuntosalkku Oyj vs. SSH Communications Security | Asuntosalkku Oyj vs. Alandsbanken Abp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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