Correlation Between Kamux Suomi and Revenio
Can any of the company-specific risk be diversified away by investing in both Kamux Suomi and Revenio 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 Kamux Suomi and Revenio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kamux Suomi Oy and Revenio Group, you can compare the effects of market volatilities on Kamux Suomi and Revenio 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 Kamux Suomi with a short position of Revenio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamux Suomi and Revenio.
Diversification Opportunities for Kamux Suomi and Revenio
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kamux and Revenio is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kamux Suomi Oy and Revenio Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revenio Group and Kamux Suomi 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 Kamux Suomi Oy are associated (or correlated) with Revenio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revenio Group has no effect on the direction of Kamux Suomi i.e., Kamux Suomi and Revenio go up and down completely randomly.
Pair Corralation between Kamux Suomi and Revenio
Assuming the 90 days trading horizon Kamux Suomi Oy is expected to under-perform the Revenio. But the stock apears to be less risky and, when comparing its historical volatility, Kamux Suomi Oy is 1.26 times less risky than Revenio. The stock trades about -0.02 of its potential returns per unit of risk. The Revenio Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,667 in Revenio Group on August 28, 2024 and sell it today you would lose (967.00) from holding Revenio Group or give up 26.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kamux Suomi Oy vs. Revenio Group
Performance |
| Timeline |
| Kamux Suomi Oy |
| Revenio Group |
Kamux Suomi and Revenio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamux Suomi and Revenio
The main advantage of trading using opposite Kamux Suomi and Revenio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamux Suomi position performs unexpectedly, Revenio 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 Revenio will offset losses from the drop in Revenio's long position.| Kamux Suomi vs. Harvia Oyj | Kamux Suomi vs. Qt Group Oyj | Kamux Suomi vs. Tokmanni Group Oyj | Kamux Suomi vs. Sampo Oyj A |
| Revenio vs. Telia Company AB | Revenio vs. Wartsila Oyj Abp | Revenio vs. Tokmanni Group Oyj | Revenio vs. YIT 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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