Correlation Between Raisio Oyj and Oriola KD
Can any of the company-specific risk be diversified away by investing in both Raisio Oyj and Oriola KD 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 Oriola KD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raisio Oyj Vaihto osake and Oriola KD Oyj A, you can compare the effects of market volatilities on Raisio Oyj and Oriola KD 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 Oriola KD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raisio Oyj and Oriola KD.
Diversification Opportunities for Raisio Oyj and Oriola KD
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Raisio and Oriola is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Raisio Oyj Vaihto osake and Oriola KD Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriola KD 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 Vaihto osake are associated (or correlated) with Oriola KD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriola KD Oyj has no effect on the direction of Raisio Oyj i.e., Raisio Oyj and Oriola KD go up and down completely randomly.
Pair Corralation between Raisio Oyj and Oriola KD
Assuming the 90 days trading horizon Raisio Oyj Vaihto osake is expected to generate 0.87 times more return on investment than Oriola KD. However, Raisio Oyj Vaihto osake is 1.15 times less risky than Oriola KD. It trades about 0.04 of its potential returns per unit of risk. Oriola KD Oyj A is currently generating about -0.02 per unit of risk. If you would invest 187.00 in Raisio Oyj Vaihto osake on August 27, 2024 and sell it today you would earn a total of 25.00 from holding Raisio Oyj Vaihto osake or generate 13.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raisio Oyj Vaihto osake vs. Oriola KD Oyj A
Performance |
| Timeline |
| Raisio Oyj Vaihto |
| Oriola KD Oyj |
Raisio Oyj and Oriola KD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raisio Oyj and Oriola KD
The main advantage of trading using opposite Raisio Oyj and Oriola KD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raisio Oyj position performs unexpectedly, Oriola KD 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 Oriola KD will offset losses from the drop in Oriola KD's long position.| Raisio Oyj vs. Wartsila Oyj Abp | Raisio Oyj vs. Telia Company AB | Raisio Oyj vs. Tokmanni Group Oyj | Raisio Oyj vs. Kemira Oyj |
| Oriola KD vs. Lassila Tikanoja Oyj | Oriola KD vs. Raisio Oyj Vaihto osake | Oriola KD vs. YIT Oyj | Oriola KD vs. Orion Oyj A |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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