Correlation Between Kempower Oyj and SSH Communications
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By analyzing existing cross correlation between Kempower Oyj and SSH Communications Security, you can compare the effects of market volatilities on Kempower Oyj and SSH Communications 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 Kempower Oyj with a short position of SSH Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kempower Oyj and SSH Communications.
Diversification Opportunities for Kempower Oyj and SSH Communications
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kempower and SSH is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kempower Oyj and SSH Communications Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSH Communications and Kempower 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 Kempower Oyj are associated (or correlated) with SSH Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSH Communications has no effect on the direction of Kempower Oyj i.e., Kempower Oyj and SSH Communications go up and down completely randomly.
Pair Corralation between Kempower Oyj and SSH Communications
Assuming the 90 days trading horizon Kempower Oyj is expected to generate 0.77 times more return on investment than SSH Communications. However, Kempower Oyj is 1.3 times less risky than SSH Communications. It trades about -0.2 of its potential returns per unit of risk. SSH Communications Security is currently generating about -0.18 per unit of risk. If you would invest 1,071 in Kempower Oyj on August 29, 2024 and sell it today you would lose (142.00) from holding Kempower Oyj or give up 13.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kempower Oyj vs. SSH Communications Security
Performance |
| Timeline |
| Kempower Oyj |
| SSH Communications |
Kempower Oyj and SSH Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kempower Oyj and SSH Communications
The main advantage of trading using opposite Kempower Oyj and SSH Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kempower Oyj position performs unexpectedly, SSH Communications 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 SSH Communications will offset losses from the drop in SSH Communications' long position.| Kempower Oyj vs. Oma Saastopankki Oyj | Kempower Oyj vs. Tecnotree Oyj | Kempower Oyj vs. Tokmanni Group Oyj | Kempower Oyj vs. Vaisala Oyj A |
| SSH Communications vs. Tecnotree Oyj | SSH Communications vs. Qt Group Oyj | SSH Communications vs. Bittium Oyj | SSH Communications vs. Harvia 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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