Correlation Between Outokumpu Oyj and Sea
Can any of the company-specific risk be diversified away by investing in both Outokumpu Oyj and Sea at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Outokumpu Oyj and Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outokumpu Oyj and Sea, you can compare the effects of market volatilities on Outokumpu Oyj and Sea 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 Outokumpu Oyj with a short position of Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outokumpu Oyj and Sea.
Diversification Opportunities for Outokumpu Oyj and Sea
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Outokumpu and Sea is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Outokumpu Oyj and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea and Outokumpu Oyj 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 Outokumpu Oyj are associated (or correlated) with Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Outokumpu Oyj i.e., Outokumpu Oyj and Sea go up and down completely randomly.
Pair Corralation between Outokumpu Oyj and Sea
If you would invest 9,535 in Sea on August 31, 2024 and sell it today you would earn a total of 2,036 from holding Sea or generate 21.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outokumpu Oyj vs. Sea
Performance |
| Timeline |
| Outokumpu Oyj |
| Sea |
Outokumpu Oyj and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outokumpu Oyj and Sea
The main advantage of trading using opposite Outokumpu Oyj and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outokumpu Oyj position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| Outokumpu Oyj vs. Live Ventures | Outokumpu Oyj vs. WiMi Hologram Cloud | Outokumpu Oyj vs. Zhihu Inc ADR | Outokumpu Oyj vs. BCE Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |