Correlation Between OMX Helsinki and Raute Oyj
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Helsinki 25 and Raute Oyj, you can compare the effects of market volatilities on OMX Helsinki and Raute 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 Raute Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Raute Oyj.
Diversification Opportunities for OMX Helsinki and Raute Oyj
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OMX and Raute is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Raute Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raute 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 Raute Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raute Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Raute Oyj go up and down completely randomly.
Pair Corralation between OMX Helsinki and Raute Oyj
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Raute Oyj. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 2.24 times less risky than Raute Oyj. The index trades about -0.35 of its potential returns per unit of risk. The Raute Oyj is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,275 in Raute Oyj on August 27, 2024 and sell it today you would earn a total of 15.00 from holding Raute Oyj or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Raute Oyj
Performance |
| Timeline |
OMX Helsinki and Raute Oyj Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Raute Oyj
Pair trading matchups for Raute Oyj
Pair Trading with OMX Helsinki and Raute Oyj
The main advantage of trading using opposite OMX Helsinki and Raute Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Raute 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 Raute Oyj will offset losses from the drop in Raute Oyj'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 |
| Raute Oyj vs. Aktia Bank Abp | Raute Oyj vs. Alandsbanken Abp B | Raute Oyj vs. Alandsbanken Abp A | Raute Oyj vs. Sampo Oyj A |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |