Correlation Between OMX Helsinki and Purmo Group
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By analyzing existing cross correlation between OMX Helsinki 25 and Purmo Group Oyj, you can compare the effects of market volatilities on OMX Helsinki and Purmo Group 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 Purmo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Purmo Group.
Diversification Opportunities for OMX Helsinki and Purmo Group
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and Purmo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Purmo Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Purmo Group 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 Purmo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Purmo Group Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Purmo Group go up and down completely randomly.
Pair Corralation between OMX Helsinki and Purmo Group
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Purmo Group. In addition to that, OMX Helsinki is 1.26 times more volatile than Purmo Group Oyj. It trades about -0.31 of its total potential returns per unit of risk. Purmo Group Oyj is currently generating about 0.03 per unit of volatility. If you would invest 1,120 in Purmo Group Oyj on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Purmo Group Oyj or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Purmo Group Oyj
Performance |
| Timeline |
OMX Helsinki and Purmo Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Purmo Group Oyj
Pair trading matchups for Purmo Group
Pair Trading with OMX Helsinki and Purmo Group
The main advantage of trading using opposite OMX Helsinki and Purmo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Purmo Group 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 Purmo Group will offset losses from the drop in Purmo Group'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 |
| Purmo Group vs. Vaisala Oyj A | Purmo Group vs. Sanoma Oyj | Purmo Group vs. EcoUp Oyj | Purmo Group vs. KONE 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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