Correlation Between Raisio Oyj and Teleste Oyj
Can any of the company-specific risk be diversified away by investing in both Raisio Oyj and Teleste 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 Teleste Oyj 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 Teleste Oyj, you can compare the effects of market volatilities on Raisio Oyj and Teleste 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 Teleste Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raisio Oyj and Teleste Oyj.
Diversification Opportunities for Raisio Oyj and Teleste Oyj
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Raisio and Teleste is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Raisio Oyj Vaihto osake and Teleste Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleste 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 Teleste Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleste Oyj has no effect on the direction of Raisio Oyj i.e., Raisio Oyj and Teleste Oyj go up and down completely randomly.
Pair Corralation between Raisio Oyj and Teleste Oyj
Assuming the 90 days trading horizon Raisio Oyj Vaihto osake is expected to under-perform the Teleste Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Raisio Oyj Vaihto osake is 1.78 times less risky than Teleste Oyj. The stock trades about -0.22 of its potential returns per unit of risk. The Teleste Oyj is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Teleste Oyj on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Teleste Oyj or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raisio Oyj Vaihto osake vs. Teleste Oyj
Performance |
| Timeline |
| Raisio Oyj Vaihto |
| Teleste Oyj |
Raisio Oyj and Teleste Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raisio Oyj and Teleste Oyj
The main advantage of trading using opposite Raisio Oyj and Teleste Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raisio Oyj position performs unexpectedly, Teleste 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 Teleste Oyj will offset losses from the drop in Teleste Oyj'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 |
| Teleste Oyj vs. Kemira Oyj | Teleste Oyj vs. Atria Oyj A | Teleste Oyj vs. Bittium Oyj | Teleste Oyj vs. Raisio Oyj Vaihto osake |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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