Correlation Between Kesko Oyj and Optomed PLC
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By analyzing existing cross correlation between Kesko Oyj and Optomed PLC, you can compare the effects of market volatilities on Kesko Oyj and Optomed PLC 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 Kesko Oyj with a short position of Optomed PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesko Oyj and Optomed PLC.
Diversification Opportunities for Kesko Oyj and Optomed PLC
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kesko and Optomed is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kesko Oyj and Optomed PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optomed PLC and Kesko 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 Kesko Oyj are associated (or correlated) with Optomed PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optomed PLC has no effect on the direction of Kesko Oyj i.e., Kesko Oyj and Optomed PLC go up and down completely randomly.
Pair Corralation between Kesko Oyj and Optomed PLC
Assuming the 90 days trading horizon Kesko Oyj is expected to generate 0.47 times more return on investment than Optomed PLC. However, Kesko Oyj is 2.12 times less risky than Optomed PLC. It trades about 0.02 of its potential returns per unit of risk. Optomed PLC is currently generating about -0.06 per unit of risk. If you would invest 1,890 in Kesko Oyj on August 30, 2024 and sell it today you would earn a total of 14.00 from holding Kesko Oyj or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kesko Oyj vs. Optomed PLC
Performance |
| Timeline |
| Kesko Oyj |
| Optomed PLC |
Kesko Oyj and Optomed PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kesko Oyj and Optomed PLC
The main advantage of trading using opposite Kesko Oyj and Optomed PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesko Oyj position performs unexpectedly, Optomed PLC 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 Optomed PLC will offset losses from the drop in Optomed PLC's long position.| Kesko Oyj vs. Sampo Oyj A | Kesko Oyj vs. UPM Kymmene Oyj | Kesko Oyj vs. Valmet Oyj | Kesko Oyj vs. Elisa Oyj |
| Optomed PLC vs. Harvia Oyj | Optomed PLC vs. Revenio Group | Optomed PLC vs. Qt Group Oyj | Optomed PLC vs. Tecnotree 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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