Correlation Between Kesko Oyj and Om Holdings
Can any of the company-specific risk be diversified away by investing in both Kesko Oyj and Om Holdings 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 Kesko Oyj and Om Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kesko Oyj ADR and Om Holdings International, you can compare the effects of market volatilities on Kesko Oyj and Om Holdings 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 Om Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesko Oyj and Om Holdings.
Diversification Opportunities for Kesko Oyj and Om Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kesko and OMHI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kesko Oyj ADR and Om Holdings International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Om Holdings International 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 ADR are associated (or correlated) with Om Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Om Holdings International has no effect on the direction of Kesko Oyj i.e., Kesko Oyj and Om Holdings go up and down completely randomly.
Pair Corralation between Kesko Oyj and Om Holdings
If you would invest 0.02 in Om Holdings International on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Om Holdings International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Kesko Oyj ADR vs. Om Holdings International
Performance |
| Timeline |
| Kesko Oyj ADR |
| Om Holdings International |
Kesko Oyj and Om Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kesko Oyj and Om Holdings
The main advantage of trading using opposite Kesko Oyj and Om Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesko Oyj position performs unexpectedly, Om Holdings 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 Om Holdings will offset losses from the drop in Om Holdings' long position.| Kesko Oyj vs. Carrefour SA PK | Kesko Oyj vs. J Sainsbury plc | Kesko Oyj vs. Om Holdings International | Kesko Oyj vs. J Sainsbury PLC |
| Om Holdings vs. Carrefour SA | Om Holdings vs. J Sainsbury plc | Om Holdings vs. Carrefour SA PK | Om Holdings vs. Kesko Oyj ADR |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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