Correlation Between OMX Helsinki and Incap Oyj
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By analyzing existing cross correlation between OMX Helsinki 25 and Incap Oyj, you can compare the effects of market volatilities on OMX Helsinki and Incap 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 Incap Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Incap Oyj.
Diversification Opportunities for OMX Helsinki and Incap Oyj
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Incap is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Incap Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incap 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 Incap Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incap Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Incap Oyj go up and down completely randomly.
Pair Corralation between OMX Helsinki and Incap Oyj
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to generate 0.47 times more return on investment than Incap Oyj. However, OMX Helsinki 25 is 2.14 times less risky than Incap Oyj. It trades about -0.28 of its potential returns per unit of risk. Incap Oyj is currently generating about -0.13 per unit of risk. If you would invest 473,564 in OMX Helsinki 25 on August 30, 2024 and sell it today you would lose (42,496) from holding OMX Helsinki 25 or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Incap Oyj
Performance |
| Timeline |
OMX Helsinki and Incap Oyj Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Incap Oyj
Pair trading matchups for Incap Oyj
Pair Trading with OMX Helsinki and Incap Oyj
The main advantage of trading using opposite OMX Helsinki and Incap Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Incap 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 Incap Oyj will offset losses from the drop in Incap Oyj's long position.| OMX Helsinki vs. SSH Communications Security | OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. Reka Industrial Oyj | OMX Helsinki vs. Nordea Bank Abp |
| Incap Oyj vs. Harvia Oyj | Incap Oyj vs. Qt Group Oyj | Incap Oyj vs. Revenio Group | Incap Oyj vs. Tecnotree 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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