Correlation Between OMX Helsinki and Tokmanni Group
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By analyzing existing cross correlation between OMX Helsinki 25 and Tokmanni Group Oyj, you can compare the effects of market volatilities on OMX Helsinki and Tokmanni 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 Tokmanni Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Tokmanni Group.
Diversification Opportunities for OMX Helsinki and Tokmanni Group
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Tokmanni is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Tokmanni Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokmanni 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 Tokmanni Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokmanni Group Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Tokmanni Group go up and down completely randomly.
Pair Corralation between OMX Helsinki and Tokmanni Group
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Tokmanni Group. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 4.27 times less risky than Tokmanni Group. The index trades about -0.32 of its potential returns per unit of risk. The Tokmanni Group Oyj is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,040 in Tokmanni Group Oyj on August 28, 2024 and sell it today you would earn a total of 139.00 from holding Tokmanni Group Oyj or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Tokmanni Group Oyj
Performance |
| Timeline |
OMX Helsinki and Tokmanni Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Tokmanni Group Oyj
Pair trading matchups for Tokmanni Group
Pair Trading with OMX Helsinki and Tokmanni Group
The main advantage of trading using opposite OMX Helsinki and Tokmanni Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Tokmanni 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 Tokmanni Group will offset losses from the drop in Tokmanni Group'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 |
| Tokmanni Group vs. Sampo Oyj A | Tokmanni Group vs. Harvia Oyj | Tokmanni Group vs. Nordea Bank Abp | Tokmanni Group vs. Fortum 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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