Correlation Between Sampo Oyj and Alandsbanken Abp
Can any of the company-specific risk be diversified away by investing in both Sampo Oyj and Alandsbanken Abp 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 Sampo Oyj and Alandsbanken Abp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampo Oyj A and Alandsbanken Abp A, you can compare the effects of market volatilities on Sampo Oyj and Alandsbanken Abp 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 Sampo Oyj with a short position of Alandsbanken Abp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and Alandsbanken Abp.
Diversification Opportunities for Sampo Oyj and Alandsbanken Abp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sampo and Alandsbanken is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj A and Alandsbanken Abp A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alandsbanken Abp A and Sampo Oyj 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 Sampo Oyj A are associated (or correlated) with Alandsbanken Abp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alandsbanken Abp A has no effect on the direction of Sampo Oyj i.e., Sampo Oyj and Alandsbanken Abp go up and down completely randomly.
Pair Corralation between Sampo Oyj and Alandsbanken Abp
Assuming the 90 days trading horizon Sampo Oyj A is expected to under-perform the Alandsbanken Abp. But the stock apears to be less risky and, when comparing its historical volatility, Sampo Oyj A is 1.15 times less risky than Alandsbanken Abp. The stock trades about -0.07 of its potential returns per unit of risk. The Alandsbanken Abp A is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,490 in Alandsbanken Abp A on August 25, 2024 and sell it today you would lose (40.00) from holding Alandsbanken Abp A or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sampo Oyj A vs. Alandsbanken Abp A
Performance |
| Timeline |
| Sampo Oyj A |
| Alandsbanken Abp A |
Sampo Oyj and Alandsbanken Abp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Oyj and Alandsbanken Abp
The main advantage of trading using opposite Sampo Oyj and Alandsbanken Abp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj position performs unexpectedly, Alandsbanken Abp 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 Alandsbanken Abp will offset losses from the drop in Alandsbanken Abp's long position.| Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. UPM Kymmene Oyj | Sampo Oyj vs. Neste Oil Oyj |
| Alandsbanken Abp vs. Sampo Oyj A | Alandsbanken Abp vs. Tokmanni Group Oyj | Alandsbanken Abp vs. Nordea Bank Abp | Alandsbanken Abp vs. TietoEVRY Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| 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 | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |