Correlation Between Reka Industrial and HKFoods Oyj
Specify exactly 2 symbols:
By analyzing existing cross correlation between Reka Industrial Oyj and HKFoods Oyj A, you can compare the effects of market volatilities on Reka Industrial and HKFoods 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 Reka Industrial with a short position of HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reka Industrial and HKFoods Oyj.
Diversification Opportunities for Reka Industrial and HKFoods Oyj
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Reka and HKFoods is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Reka Industrial Oyj and HKFoods Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HKFoods Oyj A and Reka Industrial 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 Reka Industrial Oyj are associated (or correlated) with HKFoods Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HKFoods Oyj A has no effect on the direction of Reka Industrial i.e., Reka Industrial and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Reka Industrial and HKFoods Oyj
Assuming the 90 days trading horizon Reka Industrial is expected to generate 2.96 times less return on investment than HKFoods Oyj. But when comparing it to its historical volatility, Reka Industrial Oyj is 1.38 times less risky than HKFoods Oyj. It trades about 0.02 of its potential returns per unit of risk. HKFoods Oyj A is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 70.00 in HKFoods Oyj A on August 26, 2024 and sell it today you would earn a total of 10.00 from holding HKFoods Oyj A or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.94% |
| Values | Daily Returns |
Reka Industrial Oyj vs. HKFoods Oyj A
Performance |
| Timeline |
| Reka Industrial Oyj |
| HKFoods Oyj A |
Reka Industrial and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reka Industrial and HKFoods Oyj
The main advantage of trading using opposite Reka Industrial and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reka Industrial position performs unexpectedly, HKFoods 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 HKFoods Oyj will offset losses from the drop in HKFoods Oyj's long position.| Reka Industrial vs. Oma Saastopankki Oyj | Reka Industrial vs. Tecnotree Oyj | Reka Industrial vs. Tokmanni Group Oyj | Reka Industrial vs. Vaisala Oyj A |
| HKFoods Oyj vs. Kamux Suomi Oy | HKFoods Oyj vs. Harvia Oyj | HKFoods Oyj vs. Qt Group Oyj | HKFoods Oyj vs. Tecnotree 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |