Correlation Between Inderes Oyj and Sotkamo Silver
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By analyzing existing cross correlation between Inderes Oyj and Sotkamo Silver AB, you can compare the effects of market volatilities on Inderes Oyj and Sotkamo Silver 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 Inderes Oyj with a short position of Sotkamo Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inderes Oyj and Sotkamo Silver.
Diversification Opportunities for Inderes Oyj and Sotkamo Silver
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inderes and Sotkamo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Inderes Oyj and Sotkamo Silver AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sotkamo Silver AB and Inderes 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 Inderes Oyj are associated (or correlated) with Sotkamo Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sotkamo Silver AB has no effect on the direction of Inderes Oyj i.e., Inderes Oyj and Sotkamo Silver go up and down completely randomly.
Pair Corralation between Inderes Oyj and Sotkamo Silver
Assuming the 90 days trading horizon Inderes Oyj is expected to generate 5.67 times less return on investment than Sotkamo Silver. But when comparing it to its historical volatility, Inderes Oyj is 2.78 times less risky than Sotkamo Silver. It trades about 0.03 of its potential returns per unit of risk. Sotkamo Silver AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6.05 in Sotkamo Silver AB on September 5, 2024 and sell it today you would earn a total of 3.09 from holding Sotkamo Silver AB or generate 51.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inderes Oyj vs. Sotkamo Silver AB
Performance |
| Timeline |
| Inderes Oyj |
| Sotkamo Silver AB |
Inderes Oyj and Sotkamo Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inderes Oyj and Sotkamo Silver
The main advantage of trading using opposite Inderes Oyj and Sotkamo Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inderes Oyj position performs unexpectedly, Sotkamo Silver 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 Sotkamo Silver will offset losses from the drop in Sotkamo Silver's long position.| Inderes Oyj vs. Alma Media Oyj | Inderes Oyj vs. QPR Software Oyj | Inderes Oyj vs. SSH Communications Security | Inderes Oyj vs. Detection Technology OY |
| Sotkamo Silver vs. Outokumpu Oyj | Sotkamo Silver vs. Finnair Oyj | Sotkamo Silver vs. SSAB AB ser | Sotkamo Silver vs. Telia Company AB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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