Correlation Between HKFoods Oyj and Fortum Oyj
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By analyzing existing cross correlation between HKFoods Oyj A and Fortum Oyj, you can compare the effects of market volatilities on HKFoods Oyj and Fortum 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 HKFoods Oyj with a short position of Fortum Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of HKFoods Oyj and Fortum Oyj.
Diversification Opportunities for HKFoods Oyj and Fortum Oyj
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HKFoods and Fortum is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding HKFoods Oyj A and Fortum Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortum Oyj and HKFoods 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 HKFoods Oyj A are associated (or correlated) with Fortum Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortum Oyj has no effect on the direction of HKFoods Oyj i.e., HKFoods Oyj and Fortum Oyj go up and down completely randomly.
Pair Corralation between HKFoods Oyj and Fortum Oyj
Assuming the 90 days trading horizon HKFoods Oyj A is expected to generate 1.92 times more return on investment than Fortum Oyj. However, HKFoods Oyj is 1.92 times more volatile than Fortum Oyj. It trades about 0.16 of its potential returns per unit of risk. Fortum Oyj is currently generating about -0.03 per unit of risk. If you would invest 86.00 in HKFoods Oyj A on November 3, 2024 and sell it today you would earn a total of 17.00 from holding HKFoods Oyj A or generate 19.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HKFoods Oyj A vs. Fortum Oyj
Performance |
| Timeline |
| HKFoods Oyj A |
| Fortum Oyj |
HKFoods Oyj and Fortum Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HKFoods Oyj and Fortum Oyj
The main advantage of trading using opposite HKFoods Oyj and Fortum Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HKFoods Oyj position performs unexpectedly, Fortum 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 Fortum Oyj will offset losses from the drop in Fortum Oyj's long position.| HKFoods Oyj vs. Trainers House Oyj | HKFoods Oyj vs. Nightingale Health Oyj | HKFoods Oyj vs. Nordea Bank Abp | HKFoods Oyj vs. Finnair Oyj |
| Fortum Oyj vs. HKFoods Oyj A | Fortum Oyj vs. Nightingale Health Oyj | Fortum Oyj vs. Alandsbanken Abp B | Fortum Oyj vs. Finnair 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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