Correlation Between OMX Helsinki and Nokia Oyj
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By analyzing existing cross correlation between OMX Helsinki 25 and Nokia Oyj, you can compare the effects of market volatilities on OMX Helsinki and Nokia 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 Nokia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Nokia Oyj.
Diversification Opportunities for OMX Helsinki and Nokia Oyj
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Nokia is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Nokia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Nokia Oyj go up and down completely randomly.
Pair Corralation between OMX Helsinki and Nokia Oyj
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Nokia Oyj. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 2.03 times less risky than Nokia Oyj. The index trades about -0.03 of its potential returns per unit of risk. The Nokia Oyj is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 435.00 in Nokia Oyj on September 2, 2024 and sell it today you would lose (37.00) from holding Nokia Oyj or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Nokia Oyj
Performance |
| Timeline |
OMX Helsinki and Nokia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Nokia Oyj
Pair trading matchups for Nokia Oyj
Pair Trading with OMX Helsinki and Nokia Oyj
The main advantage of trading using opposite OMX Helsinki and Nokia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Nokia 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 Nokia Oyj will offset losses from the drop in Nokia Oyj's long position.| OMX Helsinki vs. Alandsbanken Abp A | OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. Alma Media Oyj | OMX Helsinki vs. Remedy Entertainment Oyj |
| Nokia Oyj vs. Fortum Oyj | Nokia Oyj vs. Nordea Bank Abp | Nokia Oyj vs. Sampo Oyj A | Nokia Oyj vs. Neste Oil 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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