Correlation Between Innofactor Oyj and Scanfil Oyj
Can any of the company-specific risk be diversified away by investing in both Innofactor Oyj and Scanfil 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 Innofactor Oyj and Scanfil Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innofactor Oyj and Scanfil Oyj, you can compare the effects of market volatilities on Innofactor Oyj and Scanfil 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 Innofactor Oyj with a short position of Scanfil Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innofactor Oyj and Scanfil Oyj.
Diversification Opportunities for Innofactor Oyj and Scanfil Oyj
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innofactor and Scanfil is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Innofactor Oyj and Scanfil Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scanfil Oyj 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 Scanfil Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scanfil Oyj has no effect on the direction of Innofactor Oyj i.e., Innofactor Oyj and Scanfil Oyj go up and down completely randomly.
Pair Corralation between Innofactor Oyj and Scanfil Oyj
Assuming the 90 days trading horizon Innofactor Oyj is expected to generate 0.83 times more return on investment than Scanfil Oyj. However, Innofactor Oyj is 1.21 times less risky than Scanfil Oyj. It trades about 0.03 of its potential returns per unit of risk. Scanfil Oyj is currently generating about -0.16 per unit of risk. If you would invest 168.00 in Innofactor Oyj on August 30, 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 | 100.0% |
| Values | Daily Returns |
Innofactor Oyj vs. Scanfil Oyj
Performance |
| Timeline |
| Innofactor Oyj |
| Scanfil Oyj |
Innofactor Oyj and Scanfil Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innofactor Oyj and Scanfil Oyj
The main advantage of trading using opposite Innofactor Oyj and Scanfil Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innofactor Oyj position performs unexpectedly, Scanfil 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 Scanfil Oyj will offset losses from the drop in Scanfil Oyj's long position.| Innofactor Oyj vs. Tecnotree Oyj | Innofactor Oyj vs. Qt Group Oyj | Innofactor Oyj vs. Harvia Oyj | Innofactor Oyj vs. Kamux Suomi Oy |
| Scanfil Oyj vs. Tokmanni Group Oyj | Scanfil Oyj vs. Kemira Oyj | Scanfil Oyj vs. Valmet Oyj | Scanfil Oyj vs. Etteplan 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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