Correlation Between OMX Helsinki and Investors House
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By analyzing existing cross correlation between OMX Helsinki 25 and Investors House, you can compare the effects of market volatilities on OMX Helsinki and Investors House 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 Investors House. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Investors House.
Diversification Opportunities for OMX Helsinki and Investors House
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Investors is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Investors House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investors House 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 Investors House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investors House has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Investors House go up and down completely randomly.
Pair Corralation between OMX Helsinki and Investors House
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Investors House. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 1.4 times less risky than Investors House. The index trades about -0.35 of its potential returns per unit of risk. The Investors House is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Investors House on August 27, 2024 and sell it today you would lose (4.00) from holding Investors House or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Investors House
Performance |
| Timeline |
OMX Helsinki and Investors House Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Investors House
Pair trading matchups for Investors House
Pair Trading with OMX Helsinki and Investors House
The main advantage of trading using opposite OMX Helsinki and Investors House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Investors House 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 Investors House will offset losses from the drop in Investors House's long position.| OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. Detection Technology OY | OMX Helsinki vs. United Bankers Oyj | OMX Helsinki vs. Nightingale Health Oyj |
| Investors House vs. Sampo Oyj A | Investors House vs. Tokmanni Group Oyj | Investors House vs. Nordea Bank Abp | Investors House 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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