Correlation Between Qt Group and Tokmanni Group
Can any of the company-specific risk be diversified away by investing in both Qt Group and Tokmanni Group 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 Qt Group and Tokmanni Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qt Group Oyj and Tokmanni Group Oyj, you can compare the effects of market volatilities on Qt Group 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 Qt Group with a short position of Tokmanni Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qt Group and Tokmanni Group.
Diversification Opportunities for Qt Group and Tokmanni Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between QTCOM and Tokmanni is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Qt Group Oyj 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 Qt 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 Qt Group Oyj 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 Qt Group i.e., Qt Group and Tokmanni Group go up and down completely randomly.
Pair Corralation between Qt Group and Tokmanni Group
Assuming the 90 days trading horizon Qt Group Oyj is expected to generate 2.0 times more return on investment than Tokmanni Group. However, Qt Group is 2.0 times more volatile than Tokmanni Group Oyj. It trades about 0.35 of its potential returns per unit of risk. Tokmanni Group Oyj is currently generating about 0.08 per unit of risk. If you would invest 6,675 in Qt Group Oyj on October 23, 2024 and sell it today you would earn a total of 995.00 from holding Qt Group Oyj or generate 14.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qt Group Oyj vs. Tokmanni Group Oyj
Performance |
| Timeline |
| Qt Group Oyj |
| Tokmanni Group Oyj |
Qt Group and Tokmanni Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qt Group and Tokmanni Group
The main advantage of trading using opposite Qt Group and Tokmanni Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qt Group 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.| Qt Group vs. Harvia Oyj | Qt Group vs. Sampo Oyj A | Qt Group vs. Revenio Group | Qt Group vs. Kamux Suomi Oy |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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