Correlation Between HKFoods Oyj and Tecnotree Oyj
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By analyzing existing cross correlation between HKFoods Oyj A and Tecnotree Oyj, you can compare the effects of market volatilities on HKFoods Oyj and Tecnotree 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 Tecnotree Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of HKFoods Oyj and Tecnotree Oyj.
Diversification Opportunities for HKFoods Oyj and Tecnotree Oyj
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HKFoods and Tecnotree is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HKFoods Oyj A and Tecnotree Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecnotree 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 Tecnotree Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecnotree Oyj has no effect on the direction of HKFoods Oyj i.e., HKFoods Oyj and Tecnotree Oyj go up and down completely randomly.
Pair Corralation between HKFoods Oyj and Tecnotree Oyj
Assuming the 90 days trading horizon HKFoods Oyj A is expected to generate 1.34 times more return on investment than Tecnotree Oyj. However, HKFoods Oyj is 1.34 times more volatile than Tecnotree Oyj. It trades about 0.14 of its potential returns per unit of risk. Tecnotree Oyj is currently generating about -0.2 per unit of risk. If you would invest 62.00 in HKFoods Oyj A on August 30, 2024 and sell it today you would earn a total of 21.00 from holding HKFoods Oyj A or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HKFoods Oyj A vs. Tecnotree Oyj
Performance |
| Timeline |
| HKFoods Oyj A |
| Tecnotree Oyj |
HKFoods Oyj and Tecnotree Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HKFoods Oyj and Tecnotree Oyj
The main advantage of trading using opposite HKFoods Oyj and Tecnotree Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HKFoods Oyj position performs unexpectedly, Tecnotree 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 Tecnotree Oyj will offset losses from the drop in Tecnotree Oyj's long position.| HKFoods Oyj vs. QPR Software Oyj | HKFoods Oyj vs. Trainers House Oyj | HKFoods Oyj vs. Alandsbanken Abp A | HKFoods Oyj vs. Remedy Entertainment Oyj |
| Tecnotree Oyj vs. Harvia Oyj | Tecnotree Oyj vs. Qt Group Oyj | Tecnotree Oyj vs. Kamux Suomi Oy | Tecnotree Oyj 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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