Correlation Between Oriola KD and Exel Composites
Can any of the company-specific risk be diversified away by investing in both Oriola KD and Exel Composites 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 Oriola KD and Exel Composites into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriola KD Oyj A and Exel Composites Oyj, you can compare the effects of market volatilities on Oriola KD and Exel Composites 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 Oriola KD with a short position of Exel Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriola KD and Exel Composites.
Diversification Opportunities for Oriola KD and Exel Composites
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oriola and Exel is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Oriola KD Oyj A and Exel Composites Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exel Composites Oyj and Oriola KD 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 Oriola KD Oyj A are associated (or correlated) with Exel Composites. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exel Composites Oyj has no effect on the direction of Oriola KD i.e., Oriola KD and Exel Composites go up and down completely randomly.
Pair Corralation between Oriola KD and Exel Composites
Assuming the 90 days trading horizon Oriola KD Oyj A is expected to generate 0.47 times more return on investment than Exel Composites. However, Oriola KD Oyj A is 2.12 times less risky than Exel Composites. It trades about -0.25 of its potential returns per unit of risk. Exel Composites Oyj is currently generating about -0.56 per unit of risk. If you would invest 98.00 in Oriola KD Oyj A on August 30, 2024 and sell it today you would lose (6.00) from holding Oriola KD Oyj A or give up 6.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oriola KD Oyj A vs. Exel Composites Oyj
Performance |
| Timeline |
| Oriola KD Oyj |
| Exel Composites Oyj |
Oriola KD and Exel Composites Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriola KD and Exel Composites
The main advantage of trading using opposite Oriola KD and Exel Composites positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriola KD position performs unexpectedly, Exel Composites 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 Exel Composites will offset losses from the drop in Exel Composites' long position.| Oriola KD vs. Oriola KD Oyj B | Oriola KD vs. Lassila Tikanoja Oyj | Oriola KD vs. Raisio Oyj Vaihto osake | Oriola KD vs. YIT Oyj |
| Exel Composites vs. Telefonaktiebolaget LM Ericsson | Exel Composites vs. SSAB AB ser | Exel Composites vs. SSAB AB ser | Exel Composites vs. Telia Company AB |
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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