Correlation Between Incap Oyj and CapMan Oyj
Can any of the company-specific risk be diversified away by investing in both Incap Oyj and CapMan 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 Incap Oyj and CapMan Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incap Oyj and CapMan Oyj B, you can compare the effects of market volatilities on Incap Oyj and CapMan 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 Incap Oyj with a short position of CapMan Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incap Oyj and CapMan Oyj.
Diversification Opportunities for Incap Oyj and CapMan Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Incap and CapMan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Incap Oyj and CapMan Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapMan Oyj B and Incap 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 Incap Oyj are associated (or correlated) with CapMan Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapMan Oyj B has no effect on the direction of Incap Oyj i.e., Incap Oyj and CapMan Oyj go up and down completely randomly.
Pair Corralation between Incap Oyj and CapMan Oyj
Assuming the 90 days trading horizon Incap Oyj is expected to under-perform the CapMan Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Incap Oyj is 1.01 times less risky than CapMan Oyj. The stock trades about -0.12 of its potential returns per unit of risk. The CapMan Oyj B is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 183.00 in CapMan Oyj B on August 31, 2024 and sell it today you would earn a total of 0.00 from holding CapMan Oyj B or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Incap Oyj vs. CapMan Oyj B
Performance |
| Timeline |
| Incap Oyj |
| CapMan Oyj B |
Incap Oyj and CapMan Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incap Oyj and CapMan Oyj
The main advantage of trading using opposite Incap Oyj and CapMan Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incap Oyj position performs unexpectedly, CapMan 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 CapMan Oyj will offset losses from the drop in CapMan Oyj's long position.| Incap Oyj vs. Harvia Oyj | Incap Oyj vs. Qt Group Oyj | Incap Oyj vs. Revenio Group | Incap Oyj vs. Tecnotree Oyj |
| CapMan Oyj vs. Nordea Bank Abp | CapMan Oyj vs. Telia Company AB | CapMan Oyj vs. Fortum Oyj | CapMan Oyj vs. SSAB AB ser |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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