Correlation Between Kamux Suomi and Tecnotree Oyj
Can any of the company-specific risk be diversified away by investing in both Kamux Suomi and Tecnotree 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 Tecnotree 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 Tecnotree Oyj, you can compare the effects of market volatilities on Kamux Suomi and Tecnotree 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 Tecnotree Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamux Suomi and Tecnotree Oyj.
Diversification Opportunities for Kamux Suomi and Tecnotree Oyj
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kamux and Tecnotree is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kamux Suomi Oy and Tecnotree Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecnotree Oyj 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 Tecnotree Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecnotree Oyj has no effect on the direction of Kamux Suomi i.e., Kamux Suomi and Tecnotree Oyj go up and down completely randomly.
Pair Corralation between Kamux Suomi and Tecnotree Oyj
Assuming the 90 days trading horizon Kamux Suomi Oy is expected to under-perform the Tecnotree Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Kamux Suomi Oy is 1.37 times less risky than Tecnotree Oyj. The stock trades about -0.09 of its potential returns per unit of risk. The Tecnotree Oyj is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 327.00 in Tecnotree Oyj on November 2, 2024 and sell it today you would earn a total of 40.00 from holding Tecnotree Oyj or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kamux Suomi Oy vs. Tecnotree Oyj
Performance |
| Timeline |
| Kamux Suomi Oy |
| Tecnotree Oyj |
Kamux Suomi and Tecnotree Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kamux Suomi and Tecnotree Oyj
The main advantage of trading using opposite Kamux Suomi and Tecnotree Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamux Suomi position performs unexpectedly, Tecnotree 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 Tecnotree Oyj will offset losses from the drop in Tecnotree 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 |
| Tecnotree Oyj vs. Harvia Oyj | Tecnotree Oyj vs. Qt Group Oyj | Tecnotree Oyj vs. Kamux Suomi Oy | Tecnotree Oyj vs. Tokmanni 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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