Correlation Between Kesko Oyj and 126650CY4

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kesko Oyj and 126650CY4 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 126650CY4 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 CVS HEALTH P, you can compare the effects of market volatilities on Kesko Oyj and 126650CY4 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 126650CY4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesko Oyj and 126650CY4.

Diversification Opportunities for Kesko Oyj and 126650CY4

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Kesko and 126650CY4 is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kesko Oyj ADR and CVS HEALTH P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH P 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 126650CY4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH P has no effect on the direction of Kesko Oyj i.e., Kesko Oyj and 126650CY4 go up and down completely randomly.

Pair Corralation between Kesko Oyj and 126650CY4

Assuming the 90 days horizon Kesko Oyj ADR is expected to generate 1.17 times more return on investment than 126650CY4. However, Kesko Oyj is 1.17 times more volatile than CVS HEALTH P. It trades about 0.04 of its potential returns per unit of risk. CVS HEALTH P is currently generating about -0.15 per unit of risk. If you would invest  931.00  in Kesko Oyj ADR on November 3, 2024 and sell it today you would earn a total of  11.00  from holding Kesko Oyj ADR or generate 1.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Kesko Oyj ADR  vs.  CVS HEALTH P

 Performance 
       Timeline  
Kesko Oyj ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Kesko Oyj ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
CVS HEALTH P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CVS HEALTH P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CVS HEALTH P investors.

Kesko Oyj and 126650CY4 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kesko Oyj and 126650CY4

The main advantage of trading using opposite Kesko Oyj and 126650CY4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesko Oyj position performs unexpectedly, 126650CY4 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 126650CY4 will offset losses from the drop in 126650CY4's 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
The idea behind Kesko Oyj ADR and CVS HEALTH P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
126650CY4 vs. AEP TEX INC
126650CY4 vs. US BANK NATIONAL
126650CY4 vs. Valley National Bancorp
126650CY4 vs. LightPath Technologies
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.

Other Complementary Tools

Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY