Correlation Between Reka Industrial and Oma Saastopankki
Can any of the company-specific risk be diversified away by investing in both Reka Industrial and Oma Saastopankki 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 Reka Industrial and Oma Saastopankki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reka Industrial Oyj and Oma Saastopankki Oyj, you can compare the effects of market volatilities on Reka Industrial and Oma Saastopankki 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 Oma Saastopankki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reka Industrial and Oma Saastopankki.
Diversification Opportunities for Reka Industrial and Oma Saastopankki
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Reka and Oma is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Reka Industrial Oyj and Oma Saastopankki Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oma Saastopankki Oyj 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 Oma Saastopankki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oma Saastopankki Oyj has no effect on the direction of Reka Industrial i.e., Reka Industrial and Oma Saastopankki go up and down completely randomly.
Pair Corralation between Reka Industrial and Oma Saastopankki
Assuming the 90 days trading horizon Reka Industrial Oyj is expected to generate 0.78 times more return on investment than Oma Saastopankki. However, Reka Industrial Oyj is 1.29 times less risky than Oma Saastopankki. It trades about -0.05 of its potential returns per unit of risk. Oma Saastopankki Oyj is currently generating about -0.16 per unit of risk. If you would invest 495.00 in Reka Industrial Oyj on August 28, 2024 and sell it today you would lose (15.00) from holding Reka Industrial Oyj or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reka Industrial Oyj vs. Oma Saastopankki Oyj
Performance |
| Timeline |
| Reka Industrial Oyj |
| Oma Saastopankki Oyj |
Reka Industrial and Oma Saastopankki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reka Industrial and Oma Saastopankki
The main advantage of trading using opposite Reka Industrial and Oma Saastopankki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reka Industrial position performs unexpectedly, Oma Saastopankki 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 Oma Saastopankki will offset losses from the drop in Oma Saastopankki's long position.| Reka Industrial vs. Oma Saastopankki Oyj | Reka Industrial vs. Optomed PLC | Reka Industrial vs. Aspocomp Group Oyj | Reka Industrial vs. Tecnotree Oyj |
| Oma Saastopankki vs. Kamux Suomi Oy | Oma Saastopankki vs. Harvia Oyj | Oma Saastopankki vs. TietoEVRY Corp | Oma Saastopankki vs. Tokmanni Group 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |