Correlation Between HKFoods Oyj and Nokian Renkaat
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By analyzing existing cross correlation between HKFoods Oyj A and Nokian Renkaat Oyj, you can compare the effects of market volatilities on HKFoods Oyj and Nokian Renkaat 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 Nokian Renkaat. Check out your portfolio center. Please also check ongoing floating volatility patterns of HKFoods Oyj and Nokian Renkaat.
Diversification Opportunities for HKFoods Oyj and Nokian Renkaat
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HKFoods and Nokian is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding HKFoods Oyj A and Nokian Renkaat Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokian Renkaat 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 Nokian Renkaat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokian Renkaat Oyj has no effect on the direction of HKFoods Oyj i.e., HKFoods Oyj and Nokian Renkaat go up and down completely randomly.
Pair Corralation between HKFoods Oyj and Nokian Renkaat
Assuming the 90 days trading horizon HKFoods Oyj A is expected to generate 2.33 times more return on investment than Nokian Renkaat. However, HKFoods Oyj is 2.33 times more volatile than Nokian Renkaat Oyj. It trades about 0.1 of its potential returns per unit of risk. Nokian Renkaat Oyj is currently generating about -0.22 per unit of risk. If you would invest 75.00 in HKFoods Oyj A on August 27, 2024 and sell it today you would earn a total of 5.00 from holding HKFoods Oyj A or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
HKFoods Oyj A vs. Nokian Renkaat Oyj
Performance |
| Timeline |
| HKFoods Oyj A |
| Nokian Renkaat Oyj |
HKFoods Oyj and Nokian Renkaat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HKFoods Oyj and Nokian Renkaat
The main advantage of trading using opposite HKFoods Oyj and Nokian Renkaat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HKFoods Oyj position performs unexpectedly, Nokian Renkaat 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 Nokian Renkaat will offset losses from the drop in Nokian Renkaat's long position.| HKFoods Oyj vs. Kamux Suomi Oy | HKFoods Oyj vs. Harvia Oyj | HKFoods Oyj vs. Qt Group Oyj | HKFoods Oyj vs. Tecnotree Oyj |
| Nokian Renkaat vs. Fortum Oyj | Nokian Renkaat vs. Sampo Oyj A | Nokian Renkaat vs. Nordea Bank Abp | Nokian Renkaat vs. Wartsila Oyj Abp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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