Correlation Between Revenio and Gofore Oyj
Can any of the company-specific risk be diversified away by investing in both Revenio and Gofore 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 Revenio and Gofore Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revenio Group and Gofore Oyj, you can compare the effects of market volatilities on Revenio and Gofore 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 Revenio with a short position of Gofore Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revenio and Gofore Oyj.
Diversification Opportunities for Revenio and Gofore Oyj
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Revenio and Gofore is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Revenio Group and Gofore Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gofore Oyj and Revenio 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 Revenio Group are associated (or correlated) with Gofore Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gofore Oyj has no effect on the direction of Revenio i.e., Revenio and Gofore Oyj go up and down completely randomly.
Pair Corralation between Revenio and Gofore Oyj
Assuming the 90 days trading horizon Revenio Group is expected to under-perform the Gofore Oyj. In addition to that, Revenio is 1.57 times more volatile than Gofore Oyj. It trades about -0.27 of its total potential returns per unit of risk. Gofore Oyj is currently generating about -0.15 per unit of volatility. If you would invest 2,275 in Gofore Oyj on August 27, 2024 and sell it today you would lose (125.00) from holding Gofore Oyj or give up 5.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Revenio Group vs. Gofore Oyj
Performance |
| Timeline |
| Revenio Group |
| Gofore Oyj |
Revenio and Gofore Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revenio and Gofore Oyj
The main advantage of trading using opposite Revenio and Gofore Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revenio position performs unexpectedly, Gofore 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 Gofore Oyj will offset losses from the drop in Gofore Oyj's long position.The idea behind Revenio Group and Gofore Oyj pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gofore Oyj vs. Qt Group Oyj | Gofore Oyj vs. Harvia Oyj | Gofore Oyj vs. TietoEVRY Corp | Gofore Oyj vs. Kamux Suomi Oy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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