Correlation Between Oma Saastopankki and CapMan Oyj
Can any of the company-specific risk be diversified away by investing in both Oma Saastopankki and CapMan 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 Oma Saastopankki and CapMan Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oma Saastopankki Oyj and CapMan Oyj B, you can compare the effects of market volatilities on Oma Saastopankki and CapMan 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 Oma Saastopankki with a short position of CapMan Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oma Saastopankki and CapMan Oyj.
Diversification Opportunities for Oma Saastopankki and CapMan Oyj
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oma and CapMan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oma Saastopankki Oyj and CapMan Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapMan Oyj B and Oma Saastopankki 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 Oma Saastopankki Oyj are associated (or correlated) with CapMan Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapMan Oyj B has no effect on the direction of Oma Saastopankki i.e., Oma Saastopankki and CapMan Oyj go up and down completely randomly.
Pair Corralation between Oma Saastopankki and CapMan Oyj
Assuming the 90 days trading horizon Oma Saastopankki Oyj is expected to under-perform the CapMan Oyj. In addition to that, Oma Saastopankki is 1.15 times more volatile than CapMan Oyj B. It trades about -0.04 of its total potential returns per unit of risk. CapMan Oyj B is currently generating about -0.04 per unit of volatility. If you would invest 242.00 in CapMan Oyj B on August 27, 2024 and sell it today you would lose (70.00) from holding CapMan Oyj B or give up 28.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oma Saastopankki Oyj vs. CapMan Oyj B
Performance |
| Timeline |
| Oma Saastopankki Oyj |
| CapMan Oyj B |
Oma Saastopankki and CapMan Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oma Saastopankki and CapMan Oyj
The main advantage of trading using opposite Oma Saastopankki and CapMan Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oma Saastopankki position performs unexpectedly, CapMan 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 CapMan Oyj will offset losses from the drop in CapMan Oyj's long position.| Oma Saastopankki vs. Kamux Suomi Oy | Oma Saastopankki vs. Harvia Oyj | Oma Saastopankki vs. TietoEVRY Corp | Oma Saastopankki vs. Tokmanni Group Oyj |
| CapMan Oyj vs. Nordea Bank Abp | CapMan Oyj vs. Fortum Oyj | CapMan Oyj vs. UPM Kymmene Oyj | CapMan Oyj vs. Neste Oil 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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