Correlation Between ETFS Coffee and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both ETFS Coffee 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 ETFS Coffee and Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETFS Coffee ETC and Fiskars Oyj Abp, you can compare the effects of market volatilities on ETFS Coffee 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 ETFS Coffee with a short position of Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETFS Coffee and Fiskars Oyj.
Diversification Opportunities for ETFS Coffee and Fiskars Oyj
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETFS and Fiskars is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ETFS Coffee ETC 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 ETFS Coffee 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 ETFS Coffee ETC 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 ETFS Coffee i.e., ETFS Coffee and Fiskars Oyj go up and down completely randomly.
Pair Corralation between ETFS Coffee and Fiskars Oyj
Assuming the 90 days trading horizon ETFS Coffee ETC is expected to generate 1.69 times more return on investment than Fiskars Oyj. However, ETFS Coffee is 1.69 times more volatile than Fiskars Oyj Abp. It trades about 0.25 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about 0.02 per unit of risk. If you would invest 5,346 in ETFS Coffee ETC on November 2, 2024 and sell it today you would earn a total of 637.00 from holding ETFS Coffee ETC or generate 11.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ETFS Coffee ETC vs. Fiskars Oyj Abp
Performance |
| Timeline |
| ETFS Coffee ETC |
| Fiskars Oyj Abp |
ETFS Coffee and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETFS Coffee and Fiskars Oyj
The main advantage of trading using opposite ETFS Coffee and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETFS Coffee 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.| ETFS Coffee vs. QBE Insurance Group | ETFS Coffee vs. Molson Coors Beverage | ETFS Coffee vs. Urban Outfitters | ETFS Coffee vs. China Resources Beer |
| Fiskars Oyj vs. Treasury Wine Estates | Fiskars Oyj vs. NAKED WINES PLC | Fiskars Oyj vs. URBAN OUTFITTERS | Fiskars Oyj vs. Check Point Software |
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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