Correlation Between Rush Factory and UPM Kymmene
Can any of the company-specific risk be diversified away by investing in both Rush Factory and UPM Kymmene 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 UPM Kymmene 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 UPM Kymmene Oyj, you can compare the effects of market volatilities on Rush Factory and UPM Kymmene 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 UPM Kymmene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rush Factory and UPM Kymmene.
Diversification Opportunities for Rush Factory and UPM Kymmene
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rush and UPM is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Rush Factory Oyj and UPM Kymmene Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPM Kymmene 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 UPM Kymmene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPM Kymmene Oyj has no effect on the direction of Rush Factory i.e., Rush Factory and UPM Kymmene go up and down completely randomly.
Pair Corralation between Rush Factory and UPM Kymmene
If you would invest 2,718 in UPM Kymmene Oyj on November 3, 2024 and sell it today you would earn a total of 122.00 from holding UPM Kymmene Oyj or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rush Factory Oyj vs. UPM Kymmene Oyj
Performance |
| Timeline |
| Rush Factory Oyj |
| UPM Kymmene Oyj |
Rush Factory and UPM Kymmene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rush Factory and UPM Kymmene
The main advantage of trading using opposite Rush Factory and UPM Kymmene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rush Factory position performs unexpectedly, UPM Kymmene 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 UPM Kymmene will offset losses from the drop in UPM Kymmene's long position.| Rush Factory vs. Heeros Oyj | Rush Factory vs. Nexstim Oyj | Rush Factory vs. Titanium Oyj | Rush Factory vs. Vincit Group Oyj |
| UPM Kymmene vs. Sampo Oyj A | UPM Kymmene vs. Fortum Oyj | UPM Kymmene vs. Nordea Bank Abp | UPM Kymmene vs. Stora Enso 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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