Correlation Between Raisio Oyj and Apetit Oyj
Can any of the company-specific risk be diversified away by investing in both Raisio Oyj and Apetit 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 Raisio Oyj and Apetit Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raisio Oyj and Apetit Oyj, you can compare the effects of market volatilities on Raisio Oyj and Apetit 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 Raisio Oyj with a short position of Apetit Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raisio Oyj and Apetit Oyj.
Diversification Opportunities for Raisio Oyj and Apetit Oyj
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raisio and Apetit is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Raisio Oyj and Apetit Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apetit Oyj and Raisio 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 Raisio Oyj are associated (or correlated) with Apetit Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apetit Oyj has no effect on the direction of Raisio Oyj i.e., Raisio Oyj and Apetit Oyj go up and down completely randomly.
Pair Corralation between Raisio Oyj and Apetit Oyj
Assuming the 90 days trading horizon Raisio Oyj is expected to under-perform the Apetit Oyj. In addition to that, Raisio Oyj is 1.85 times more volatile than Apetit Oyj. It trades about -0.05 of its total potential returns per unit of risk. Apetit Oyj is currently generating about 0.02 per unit of volatility. If you would invest 1,350 in Apetit Oyj on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Apetit Oyj or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raisio Oyj vs. Apetit Oyj
Performance |
| Timeline |
| Raisio Oyj |
| Apetit Oyj |
Raisio Oyj and Apetit Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raisio Oyj and Apetit Oyj
The main advantage of trading using opposite Raisio Oyj and Apetit Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raisio Oyj position performs unexpectedly, Apetit 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 Apetit Oyj will offset losses from the drop in Apetit Oyj's long position.| Raisio Oyj vs. Raisio Oyj Vaihto osake | Raisio Oyj vs. Digia Oyj | Raisio Oyj vs. Atria Oyj A | Raisio Oyj vs. Lassila Tikanoja Oyj |
| Apetit Oyj vs. Atria Oyj A | Apetit Oyj vs. Raisio Oyj Vaihto osake | Apetit Oyj vs. Lassila Tikanoja Oyj | Apetit Oyj vs. Kemira 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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