Correlation Between Purmo Group and HKFoods Oyj
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By analyzing existing cross correlation between Purmo Group Oyj and HKFoods Oyj A, you can compare the effects of market volatilities on Purmo Group and HKFoods 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 Purmo Group with a short position of HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purmo Group and HKFoods Oyj.
Diversification Opportunities for Purmo Group and HKFoods Oyj
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Purmo and HKFoods is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Purmo Group Oyj and HKFoods Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HKFoods Oyj A and Purmo Group 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 Purmo Group Oyj are associated (or correlated) with HKFoods Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HKFoods Oyj A has no effect on the direction of Purmo Group i.e., Purmo Group and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Purmo Group and HKFoods Oyj
Assuming the 90 days trading horizon Purmo Group is expected to generate 22.15 times less return on investment than HKFoods Oyj. But when comparing it to its historical volatility, Purmo Group Oyj is 5.11 times less risky than HKFoods Oyj. It trades about 0.03 of its potential returns per unit of risk. HKFoods Oyj A is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 75.00 in HKFoods Oyj A on August 28, 2024 and sell it today you would earn a total of 8.00 from holding HKFoods Oyj A or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Purmo Group Oyj vs. HKFoods Oyj A
Performance |
| Timeline |
| Purmo Group Oyj |
| HKFoods Oyj A |
Purmo Group and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Purmo Group and HKFoods Oyj
The main advantage of trading using opposite Purmo Group and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Purmo Group position performs unexpectedly, HKFoods 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 HKFoods Oyj will offset losses from the drop in HKFoods Oyj's long position.| Purmo Group vs. Vaisala Oyj A | Purmo Group vs. Sanoma Oyj | Purmo Group vs. EcoUp Oyj | Purmo Group vs. KONE Oyj |
| HKFoods Oyj vs. SSH Communications Security | HKFoods Oyj vs. QPR Software Oyj | HKFoods Oyj vs. Alma Media Oyj | HKFoods Oyj vs. Nightingale Health 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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