Correlation Between KONE Oyj and Aiforia Technologies
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By analyzing existing cross correlation between KONE Oyj and Aiforia Technologies Oyj, you can compare the effects of market volatilities on KONE Oyj and Aiforia Technologies 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 KONE Oyj with a short position of Aiforia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of KONE Oyj and Aiforia Technologies.
Diversification Opportunities for KONE Oyj and Aiforia Technologies
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KONE and Aiforia is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding KONE Oyj and Aiforia Technologies Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aiforia Technologies Oyj and KONE 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 KONE Oyj are associated (or correlated) with Aiforia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aiforia Technologies Oyj has no effect on the direction of KONE Oyj i.e., KONE Oyj and Aiforia Technologies go up and down completely randomly.
Pair Corralation between KONE Oyj and Aiforia Technologies
Assuming the 90 days trading horizon KONE Oyj is expected to generate 1.68 times less return on investment than Aiforia Technologies. But when comparing it to its historical volatility, KONE Oyj is 1.89 times less risky than Aiforia Technologies. It trades about 0.02 of its potential returns per unit of risk. Aiforia Technologies Oyj is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Aiforia Technologies Oyj on September 3, 2024 and sell it today you would earn a total of 24.00 from holding Aiforia Technologies Oyj or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KONE Oyj vs. Aiforia Technologies Oyj
Performance |
| Timeline |
| KONE Oyj |
| Aiforia Technologies Oyj |
KONE Oyj and Aiforia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KONE Oyj and Aiforia Technologies
The main advantage of trading using opposite KONE Oyj and Aiforia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KONE Oyj position performs unexpectedly, Aiforia Technologies 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 Aiforia Technologies will offset losses from the drop in Aiforia Technologies' long position.| KONE Oyj vs. Telefonaktiebolaget LM Ericsson | KONE Oyj vs. Telia Company AB | KONE Oyj vs. SSAB AB ser | KONE Oyj vs. SSAB AB ser |
| Aiforia Technologies vs. Nordea Bank Abp | Aiforia Technologies vs. Neste Oil Oyj | Aiforia Technologies vs. KONE Oyj | Aiforia Technologies vs. Nokia 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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