Correlation Between Oma Saastopankki and United Bankers
Can any of the company-specific risk be diversified away by investing in both Oma Saastopankki and United Bankers 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 United Bankers 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 United Bankers Oyj, you can compare the effects of market volatilities on Oma Saastopankki and United Bankers 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 United Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oma Saastopankki and United Bankers.
Diversification Opportunities for Oma Saastopankki and United Bankers
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oma and United is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oma Saastopankki Oyj and United Bankers Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Bankers 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 United Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bankers Oyj has no effect on the direction of Oma Saastopankki i.e., Oma Saastopankki and United Bankers go up and down completely randomly.
Pair Corralation between Oma Saastopankki and United Bankers
Assuming the 90 days trading horizon Oma Saastopankki Oyj is expected to under-perform the United Bankers. In addition to that, Oma Saastopankki is 2.0 times more volatile than United Bankers Oyj. It trades about -0.34 of its total potential returns per unit of risk. United Bankers Oyj is currently generating about -0.09 per unit of volatility. If you would invest 1,830 in United Bankers Oyj on December 1, 2024 and sell it today you would lose (50.00) from holding United Bankers Oyj or give up 2.73% 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. United Bankers Oyj
Performance |
| Timeline |
| Oma Saastopankki Oyj |
| United Bankers Oyj |
Oma Saastopankki and United Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oma Saastopankki and United Bankers
The main advantage of trading using opposite Oma Saastopankki and United Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oma Saastopankki position performs unexpectedly, United Bankers 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 United Bankers will offset losses from the drop in United Bankers' long position.| Oma Saastopankki vs. Kamux Suomi Oy | Oma Saastopankki vs. Harvia Oyj | Oma Saastopankki vs. TietoEVRY Corp | Oma Saastopankki vs. Tokmanni Group Oyj |
| United Bankers vs. Detection Technology OY | United Bankers vs. Alandsbanken Abp B | United Bankers vs. Aiforia Technologies Oyj | United Bankers vs. SSH Communications Security |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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