Correlation Between Meiko Electronics and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and Fiskars Oyj 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 Meiko Electronics and Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiko Electronics Co and Fiskars Oyj Abp, you can compare the effects of market volatilities on Meiko Electronics and Fiskars Oyj 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 Meiko Electronics with a short position of Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and Fiskars Oyj.
Diversification Opportunities for Meiko Electronics and Fiskars Oyj
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meiko and Fiskars is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp and Meiko Electronics 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 Meiko Electronics Co are associated (or correlated) with Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Meiko Electronics and Fiskars Oyj
Assuming the 90 days horizon Meiko Electronics Co is expected to under-perform the Fiskars Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Meiko Electronics Co is 1.12 times less risky than Fiskars Oyj. The stock trades about -0.14 of its potential returns per unit of risk. The Fiskars Oyj Abp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,432 in Fiskars Oyj Abp on October 23, 2024 and sell it today you would earn a total of 12.00 from holding Fiskars Oyj Abp or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Meiko Electronics Co vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Meiko Electronics |
| Fiskars Oyj Abp |
Meiko Electronics and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiko Electronics and Fiskars Oyj
The main advantage of trading using opposite Meiko Electronics and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, Fiskars Oyj 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Meiko Electronics vs. ASM Pacific Technology | Meiko Electronics vs. X FAB Silicon Foundries | Meiko Electronics vs. G III Apparel Group | Meiko Electronics vs. FANDIFI TECHNOLOGY P |
| Fiskars Oyj vs. Meiko Electronics Co | Fiskars Oyj vs. Altair Engineering | Fiskars Oyj vs. Nucletron Electronic Aktiengesellschaft | Fiskars Oyj vs. Air New Zealand |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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