Correlation Between Nurminen Logistics and PunaMusta Media
Can any of the company-specific risk be diversified away by investing in both Nurminen Logistics and PunaMusta Media 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 Nurminen Logistics and PunaMusta Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nurminen Logistics Oyj and PunaMusta Media Oyj, you can compare the effects of market volatilities on Nurminen Logistics and PunaMusta Media 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 Nurminen Logistics with a short position of PunaMusta Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nurminen Logistics and PunaMusta Media.
Diversification Opportunities for Nurminen Logistics and PunaMusta Media
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nurminen and PunaMusta is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Nurminen Logistics Oyj and PunaMusta Media Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PunaMusta Media Oyj and Nurminen Logistics 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 Nurminen Logistics Oyj are associated (or correlated) with PunaMusta Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PunaMusta Media Oyj has no effect on the direction of Nurminen Logistics i.e., Nurminen Logistics and PunaMusta Media go up and down completely randomly.
Pair Corralation between Nurminen Logistics and PunaMusta Media
Assuming the 90 days trading horizon Nurminen Logistics Oyj is expected to generate 1.1 times more return on investment than PunaMusta Media. However, Nurminen Logistics is 1.1 times more volatile than PunaMusta Media Oyj. It trades about 0.03 of its potential returns per unit of risk. PunaMusta Media Oyj is currently generating about -0.15 per unit of risk. If you would invest 85.00 in Nurminen Logistics Oyj on September 4, 2024 and sell it today you would earn a total of 10.00 from holding Nurminen Logistics Oyj or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.37% |
| Values | Daily Returns |
Nurminen Logistics Oyj vs. PunaMusta Media Oyj
Performance |
| Timeline |
| Nurminen Logistics Oyj |
| PunaMusta Media Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nurminen Logistics and PunaMusta Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nurminen Logistics and PunaMusta Media
The main advantage of trading using opposite Nurminen Logistics and PunaMusta Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nurminen Logistics position performs unexpectedly, PunaMusta Media 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 PunaMusta Media will offset losses from the drop in PunaMusta Media's long position.| Nurminen Logistics vs. Tulikivi Oyj A | Nurminen Logistics vs. Tecnotree Oyj | Nurminen Logistics vs. Dovre Group Plc | Nurminen Logistics vs. Solteq PLC |
| PunaMusta Media vs. Tokmanni Group Oyj | PunaMusta Media vs. Kemira Oyj | PunaMusta Media vs. Elisa Oyj | PunaMusta Media vs. Valmet 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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