Correlation Between OMX Helsinki and Sitowise Group
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By analyzing existing cross correlation between OMX Helsinki 25 and Sitowise Group Oyj, you can compare the effects of market volatilities on OMX Helsinki and Sitowise 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 Sitowise Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Sitowise Group.
Diversification Opportunities for OMX Helsinki and Sitowise Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Sitowise is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Sitowise Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitowise 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 Sitowise Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitowise Group Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Sitowise Group go up and down completely randomly.
Pair Corralation between OMX Helsinki and Sitowise Group
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to generate 0.35 times more return on investment than Sitowise Group. However, OMX Helsinki 25 is 2.89 times less risky than Sitowise Group. It trades about -0.02 of its potential returns per unit of risk. Sitowise Group Oyj is currently generating about -0.04 per unit of risk. If you would invest 461,120 in OMX Helsinki 25 on August 31, 2024 and sell it today you would lose (27,681) from holding OMX Helsinki 25 or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Sitowise Group Oyj
Performance |
| Timeline |
OMX Helsinki and Sitowise Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Sitowise Group Oyj
Pair trading matchups for Sitowise Group
Pair Trading with OMX Helsinki and Sitowise Group
The main advantage of trading using opposite OMX Helsinki and Sitowise Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Sitowise 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 Sitowise Group will offset losses from the drop in Sitowise Group's long position.| OMX Helsinki vs. Sotkamo Silver AB | OMX Helsinki vs. Trainers House Oyj | OMX Helsinki vs. United Bankers Oyj | OMX Helsinki vs. HKFoods Oyj A |
| Sitowise Group vs. TietoEVRY Corp | Sitowise Group vs. Tokmanni Group Oyj | Sitowise Group vs. Harvia Oyj | Sitowise Group vs. Puuilo 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 CEOs Directory module to screen CEOs from public companies around the world.
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