Correlation Between Innofactor Oyj and Consti Yhtiot
Can any of the company-specific risk be diversified away by investing in both Innofactor Oyj and Consti Yhtiot 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 Innofactor Oyj and Consti Yhtiot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innofactor Oyj and Consti Yhtiot Oy, you can compare the effects of market volatilities on Innofactor Oyj and Consti Yhtiot 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 Innofactor Oyj with a short position of Consti Yhtiot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innofactor Oyj and Consti Yhtiot.
Diversification Opportunities for Innofactor Oyj and Consti Yhtiot
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innofactor and Consti is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Innofactor Oyj and Consti Yhtiot Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consti Yhtiot Oy and Innofactor 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 Innofactor Oyj are associated (or correlated) with Consti Yhtiot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consti Yhtiot Oy has no effect on the direction of Innofactor Oyj i.e., Innofactor Oyj and Consti Yhtiot go up and down completely randomly.
Pair Corralation between Innofactor Oyj and Consti Yhtiot
If you would invest 168.00 in Innofactor Oyj on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Innofactor Oyj or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Innofactor Oyj vs. Consti Yhtiot Oy
Performance |
| Timeline |
| Innofactor Oyj |
| Consti Yhtiot Oy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Innofactor Oyj and Consti Yhtiot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innofactor Oyj and Consti Yhtiot
The main advantage of trading using opposite Innofactor Oyj and Consti Yhtiot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innofactor Oyj position performs unexpectedly, Consti Yhtiot 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 Consti Yhtiot will offset losses from the drop in Consti Yhtiot's long position.| Innofactor Oyj vs. Tecnotree Oyj | Innofactor Oyj vs. Qt Group Oyj | Innofactor Oyj vs. Bittium Oyj | Innofactor Oyj vs. Harvia Oyj |
| Consti Yhtiot vs. Tokmanni Group Oyj | Consti Yhtiot vs. Verkkokauppa Oyj | Consti Yhtiot vs. Innofactor Oyj | Consti Yhtiot vs. Aspocomp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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