Correlation Between Rush Factory and Tokmanni Group
Can any of the company-specific risk be diversified away by investing in both Rush Factory and Tokmanni Group 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 Rush Factory and Tokmanni Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rush Factory Oyj and Tokmanni Group Oyj, you can compare the effects of market volatilities on Rush Factory and Tokmanni Group 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 Rush Factory with a short position of Tokmanni Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Factory and Tokmanni Group.
Diversification Opportunities for Rush Factory and Tokmanni Group
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rush and Tokmanni is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Rush Factory Oyj and Tokmanni Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tokmanni Group Oyj and Rush Factory 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 Rush Factory Oyj are associated (or correlated) with Tokmanni Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tokmanni Group Oyj has no effect on the direction of Rush Factory i.e., Rush Factory and Tokmanni Group go up and down completely randomly.
Pair Corralation between Rush Factory and Tokmanni Group
If you would invest 1,227 in Tokmanni Group Oyj on November 3, 2024 and sell it today you would earn a total of 170.00 from holding Tokmanni Group Oyj or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rush Factory Oyj vs. Tokmanni Group Oyj
Performance |
| Timeline |
| Rush Factory Oyj |
| Tokmanni Group Oyj |
Rush Factory and Tokmanni Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Factory and Tokmanni Group
The main advantage of trading using opposite Rush Factory and Tokmanni Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Factory position performs unexpectedly, Tokmanni Group 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 Tokmanni Group will offset losses from the drop in Tokmanni Group's long position.| Rush Factory vs. Heeros Oyj | Rush Factory vs. Nexstim Oyj | Rush Factory vs. Titanium Oyj | Rush Factory vs. Vincit Group Oyj |
| Tokmanni Group vs. Sampo Oyj A | Tokmanni Group vs. Harvia Oyj | Tokmanni Group vs. Nordea Bank Abp | Tokmanni Group vs. Fortum 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |