Correlation Between Kamux Suomi and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Kamux Suomi and Sampo 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 Kamux Suomi and Sampo Oyj 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 Sampo Oyj A, you can compare the effects of market volatilities on Kamux Suomi and Sampo 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 Kamux Suomi with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamux Suomi and Sampo Oyj.
Diversification Opportunities for Kamux Suomi and Sampo Oyj
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kamux and Sampo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kamux Suomi Oy and Sampo Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj A 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj A has no effect on the direction of Kamux Suomi i.e., Kamux Suomi and Sampo Oyj go up and down completely randomly.
Pair Corralation between Kamux Suomi and Sampo Oyj
Assuming the 90 days trading horizon Kamux Suomi Oy is expected to under-perform the Sampo Oyj. In addition to that, Kamux Suomi is 2.08 times more volatile than Sampo Oyj A. It trades about -0.17 of its total potential returns per unit of risk. Sampo Oyj A is currently generating about -0.13 per unit of volatility. If you would invest 4,093 in Sampo Oyj A on August 28, 2024 and sell it today you would lose (90.00) from holding Sampo Oyj A or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamux Suomi Oy vs. Sampo Oyj A
Performance |
| Timeline |
| Kamux Suomi Oy |
| Sampo Oyj A |
Kamux Suomi and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamux Suomi and Sampo Oyj
The main advantage of trading using opposite Kamux Suomi and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamux Suomi position performs unexpectedly, Sampo 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 Sampo Oyj will offset losses from the drop in Sampo Oyj'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 |
| Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. UPM Kymmene Oyj | Sampo Oyj vs. Neste Oil 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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