Correlation Between HKFoods Oyj and Vaisala Oyj
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By analyzing existing cross correlation between HKFoods Oyj A and Vaisala Oyj A, you can compare the effects of market volatilities on HKFoods Oyj and Vaisala 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 Vaisala Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of HKFoods Oyj and Vaisala Oyj.
Diversification Opportunities for HKFoods Oyj and Vaisala Oyj
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between HKFoods and Vaisala is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding HKFoods Oyj A and Vaisala Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaisala Oyj A 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 Vaisala Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaisala Oyj A has no effect on the direction of HKFoods Oyj i.e., HKFoods Oyj and Vaisala Oyj go up and down completely randomly.
Pair Corralation between HKFoods Oyj and Vaisala Oyj
Assuming the 90 days trading horizon HKFoods Oyj A is expected to generate 1.69 times more return on investment than Vaisala Oyj. However, HKFoods Oyj is 1.69 times more volatile than Vaisala Oyj A. It trades about 0.17 of its potential returns per unit of risk. Vaisala Oyj A is currently generating about -0.04 per unit of risk. If you would invest 73.00 in HKFoods Oyj A on August 24, 2024 and sell it today you would earn a total of 9.00 from holding HKFoods Oyj A or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HKFoods Oyj A vs. Vaisala Oyj A
Performance |
| Timeline |
| HKFoods Oyj A |
| Vaisala Oyj A |
HKFoods Oyj and Vaisala Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HKFoods Oyj and Vaisala Oyj
The main advantage of trading using opposite HKFoods Oyj and Vaisala Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HKFoods Oyj position performs unexpectedly, Vaisala 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 Vaisala Oyj will offset losses from the drop in Vaisala Oyj'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 |
| Vaisala Oyj vs. Revenio Group | Vaisala Oyj vs. Ponsse Oyj 1 | Vaisala Oyj vs. Wartsila Oyj Abp | Vaisala Oyj vs. Cargotec 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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