Correlation Between Oma Saastopankki and Exel Composites
Can any of the company-specific risk be diversified away by investing in both Oma Saastopankki 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 Oma Saastopankki and Exel Composites 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 Exel Composites Oyj, you can compare the effects of market volatilities on Oma Saastopankki 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 Oma Saastopankki with a short position of Exel Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oma Saastopankki and Exel Composites.
Diversification Opportunities for Oma Saastopankki and Exel Composites
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oma and Exel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Oma Saastopankki Oyj 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 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 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 Oma Saastopankki i.e., Oma Saastopankki and Exel Composites go up and down completely randomly.
Pair Corralation between Oma Saastopankki and Exel Composites
Assuming the 90 days trading horizon Oma Saastopankki Oyj is expected to generate 1.19 times more return on investment than Exel Composites. However, Oma Saastopankki is 1.19 times more volatile than Exel Composites Oyj. It trades about -0.1 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 1,164 in Oma Saastopankki Oyj on August 30, 2024 and sell it today you would lose (82.00) from holding Oma Saastopankki Oyj or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oma Saastopankki Oyj vs. Exel Composites Oyj
Performance |
| Timeline |
| Oma Saastopankki Oyj |
| Exel Composites Oyj |
Oma Saastopankki and Exel Composites Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oma Saastopankki and Exel Composites
The main advantage of trading using opposite Oma Saastopankki and Exel Composites positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oma Saastopankki 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.| Oma Saastopankki vs. Kamux Suomi Oy | Oma Saastopankki vs. Harvia Oyj | Oma Saastopankki vs. TietoEVRY Corp | Oma Saastopankki vs. Tokmanni Group 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 Stocks Directory module to find actively traded stocks across global markets.
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