Correlation Between PunaMusta Media and Elecster Oyj
Can any of the company-specific risk be diversified away by investing in both PunaMusta Media and Elecster Oyj 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 PunaMusta Media and Elecster Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PunaMusta Media Oyj and Elecster Oyj A, you can compare the effects of market volatilities on PunaMusta Media and Elecster 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 PunaMusta Media with a short position of Elecster Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of PunaMusta Media and Elecster Oyj.
Diversification Opportunities for PunaMusta Media and Elecster Oyj
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PunaMusta and Elecster is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding PunaMusta Media Oyj and Elecster Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elecster Oyj A and PunaMusta Media 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 PunaMusta Media Oyj are associated (or correlated) with Elecster Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elecster Oyj A has no effect on the direction of PunaMusta Media i.e., PunaMusta Media and Elecster Oyj go up and down completely randomly.
Pair Corralation between PunaMusta Media and Elecster Oyj
Assuming the 90 days trading horizon PunaMusta Media Oyj is expected to under-perform the Elecster Oyj. But the stock apears to be less risky and, when comparing its historical volatility, PunaMusta Media Oyj is 5.02 times less risky than Elecster Oyj. The stock trades about -0.58 of its potential returns per unit of risk. The Elecster Oyj A is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Elecster Oyj A on September 3, 2024 and sell it today you would lose (26.00) from holding Elecster Oyj A or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 14.29% |
| Values | Daily Returns |
PunaMusta Media Oyj vs. Elecster Oyj A
Performance |
| Timeline |
| PunaMusta Media Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Elecster Oyj A |
PunaMusta Media and Elecster Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PunaMusta Media and Elecster Oyj
The main advantage of trading using opposite PunaMusta Media and Elecster Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PunaMusta Media position performs unexpectedly, Elecster 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 Elecster Oyj will offset losses from the drop in Elecster Oyj's long position.| PunaMusta Media vs. Raute Oyj | PunaMusta Media vs. Suominen Oyj | PunaMusta Media vs. Elecster Oyj A | PunaMusta Media vs. Siili Solutions Oyj |
| Elecster Oyj vs. Telefonaktiebolaget LM Ericsson | Elecster Oyj vs. Telia Company AB | Elecster Oyj vs. SSAB AB ser | Elecster Oyj vs. SSAB AB ser |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |