Correlation Between OMX Helsinki and Exel Composites
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By analyzing existing cross correlation between OMX Helsinki 25 and Exel Composites Oyj, you can compare the effects of market volatilities on OMX Helsinki 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 OMX Helsinki with a short position of Exel Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Exel Composites.
Diversification Opportunities for OMX Helsinki and Exel Composites
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OMX and Exel is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 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 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 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 OMX Helsinki i.e., OMX Helsinki and Exel Composites go up and down completely randomly.
Pair Corralation between OMX Helsinki and Exel Composites
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to generate 0.32 times more return on investment than Exel Composites. However, OMX Helsinki 25 is 3.09 times less risky than Exel Composites. It trades about -0.33 of its potential returns per unit of risk. Exel Composites Oyj is currently generating about -0.4 per unit of risk. If you would invest 460,385 in OMX Helsinki 25 on August 24, 2024 and sell it today you would lose (28,535) from holding OMX Helsinki 25 or give up 6.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Exel Composites Oyj
Performance |
| Timeline |
OMX Helsinki and Exel Composites Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Exel Composites Oyj
Pair trading matchups for Exel Composites
Pair Trading with OMX Helsinki and Exel Composites
The main advantage of trading using opposite OMX Helsinki and Exel Composites positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki 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.| OMX Helsinki vs. Trainers House Oyj | OMX Helsinki vs. Detection Technology OY | OMX Helsinki vs. Alma Media Oyj | OMX Helsinki vs. Sotkamo Silver AB |
| Exel Composites vs. Trainers House Oyj | Exel Composites vs. Alma Media Oyj | Exel Composites vs. Nordea Bank Abp | Exel Composites vs. Detection Technology OY |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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