Correlation Between OMX Helsinki and Elisa Oyj
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By analyzing existing cross correlation between OMX Helsinki 25 and Elisa Oyj, you can compare the effects of market volatilities on OMX Helsinki and Elisa 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 OMX Helsinki with a short position of Elisa Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Elisa Oyj.
Diversification Opportunities for OMX Helsinki and Elisa Oyj
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Elisa is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Elisa Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elisa Oyj and OMX Helsinki 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 OMX Helsinki 25 are associated (or correlated) with Elisa Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elisa Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Elisa Oyj go up and down completely randomly.
Pair Corralation between OMX Helsinki and Elisa Oyj
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Elisa Oyj. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 1.2 times less risky than Elisa Oyj. The index trades about -0.03 of its potential returns per unit of risk. The Elisa Oyj is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,651 in Elisa Oyj on August 28, 2024 and sell it today you would lose (279.00) from holding Elisa Oyj or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Elisa Oyj
Performance |
| Timeline |
OMX Helsinki and Elisa Oyj Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Elisa Oyj
Pair trading matchups for Elisa Oyj
Pair Trading with OMX Helsinki and Elisa Oyj
The main advantage of trading using opposite OMX Helsinki and Elisa Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Elisa 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 Elisa Oyj will offset losses from the drop in Elisa Oyj's long position.| OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. QPR Software Oyj | OMX Helsinki vs. Sotkamo Silver AB | OMX Helsinki vs. SSH Communications Security |
| Elisa Oyj vs. Kesko Oyj | Elisa Oyj vs. Sampo Oyj A | Elisa Oyj vs. UPM Kymmene Oyj | Elisa Oyj vs. Orion Oyj B |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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