Correlation Between Revenio and Kamux Suomi
Can any of the company-specific risk be diversified away by investing in both Revenio and Kamux Suomi 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 Kamux Suomi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Revenio Group and Kamux Suomi Oy, you can compare the effects of market volatilities on Revenio and Kamux Suomi 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 Kamux Suomi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Revenio and Kamux Suomi.
Diversification Opportunities for Revenio and Kamux Suomi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Revenio and Kamux is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Revenio Group and Kamux Suomi Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamux Suomi Oy 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 Kamux Suomi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamux Suomi Oy has no effect on the direction of Revenio i.e., Revenio and Kamux Suomi go up and down completely randomly.
Pair Corralation between Revenio and Kamux Suomi
Assuming the 90 days trading horizon Revenio Group is expected to under-perform the Kamux Suomi. In addition to that, Revenio is 1.66 times more volatile than Kamux Suomi Oy. It trades about -0.29 of its total potential returns per unit of risk. Kamux Suomi Oy is currently generating about -0.22 per unit of volatility. If you would invest 352.00 in Kamux Suomi Oy on August 24, 2024 and sell it today you would lose (27.00) from holding Kamux Suomi Oy or give up 7.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Revenio Group vs. Kamux Suomi Oy
Performance |
| Timeline |
| Revenio Group |
| Kamux Suomi Oy |
Revenio and Kamux Suomi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Revenio and Kamux Suomi
The main advantage of trading using opposite Revenio and Kamux Suomi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revenio position performs unexpectedly, Kamux Suomi 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 Kamux Suomi will offset losses from the drop in Kamux Suomi's long position.The idea behind Revenio Group and Kamux Suomi Oy 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.| Kamux Suomi vs. Harvia Oyj | Kamux Suomi vs. Qt Group Oyj | Kamux Suomi vs. Tokmanni Group Oyj | Kamux Suomi vs. Sampo 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |