Correlation Between Puuilo Oyj and Spinnova
Can any of the company-specific risk be diversified away by investing in both Puuilo Oyj and Spinnova 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 Puuilo Oyj and Spinnova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puuilo Oyj and Spinnova Oy, you can compare the effects of market volatilities on Puuilo Oyj and Spinnova 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 Puuilo Oyj with a short position of Spinnova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puuilo Oyj and Spinnova.
Diversification Opportunities for Puuilo Oyj and Spinnova
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Puuilo and Spinnova is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Puuilo Oyj and Spinnova Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnova Oy and Puuilo 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 Puuilo Oyj are associated (or correlated) with Spinnova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnova Oy has no effect on the direction of Puuilo Oyj i.e., Puuilo Oyj and Spinnova go up and down completely randomly.
Pair Corralation between Puuilo Oyj and Spinnova
Assuming the 90 days trading horizon Puuilo Oyj is expected to generate 0.47 times more return on investment than Spinnova. However, Puuilo Oyj is 2.12 times less risky than Spinnova. It trades about 0.08 of its potential returns per unit of risk. Spinnova Oy is currently generating about -0.09 per unit of risk. If you would invest 494.00 in Puuilo Oyj on September 4, 2024 and sell it today you would earn a total of 415.00 from holding Puuilo Oyj or generate 84.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puuilo Oyj vs. Spinnova Oy
Performance |
| Timeline |
| Puuilo Oyj |
| Spinnova Oy |
Puuilo Oyj and Spinnova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puuilo Oyj and Spinnova
The main advantage of trading using opposite Puuilo Oyj and Spinnova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puuilo Oyj position performs unexpectedly, Spinnova 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 Spinnova will offset losses from the drop in Spinnova's long position.| Puuilo Oyj vs. Tokmanni Group Oyj | Puuilo Oyj vs. Harvia Oyj | Puuilo Oyj vs. Kamux Suomi Oy | Puuilo Oyj vs. Qt Group Oyj |
| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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