Correlation Between Sampo Oyj and Glaston Oyj
Can any of the company-specific risk be diversified away by investing in both Sampo Oyj and Glaston Oyj 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 Glaston Oyj 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 Glaston Oyj Abp, you can compare the effects of market volatilities on Sampo Oyj and Glaston 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 Sampo Oyj with a short position of Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and Glaston Oyj.
Diversification Opportunities for Sampo Oyj and Glaston Oyj
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sampo and Glaston is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj A and Glaston Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaston Oyj Abp 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 Glaston Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaston Oyj Abp has no effect on the direction of Sampo Oyj i.e., Sampo Oyj and Glaston Oyj go up and down completely randomly.
Pair Corralation between Sampo Oyj and Glaston Oyj
Assuming the 90 days trading horizon Sampo Oyj A is expected to generate 0.61 times more return on investment than Glaston Oyj. However, Sampo Oyj A is 1.65 times less risky than Glaston Oyj. It trades about -0.11 of its potential returns per unit of risk. Glaston Oyj Abp is currently generating about -0.19 per unit of risk. If you would invest 4,190 in Sampo Oyj A on August 30, 2024 and sell it today you would lose (160.00) from holding Sampo Oyj A or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sampo Oyj A vs. Glaston Oyj Abp
Performance |
| Timeline |
| Sampo Oyj A |
| Glaston Oyj Abp |
Sampo Oyj and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Oyj and Glaston Oyj
The main advantage of trading using opposite Sampo Oyj and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj position performs unexpectedly, Glaston 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 Glaston Oyj will offset losses from the drop in Glaston Oyj's long position.| Sampo Oyj vs. Aktia Bank Abp | Sampo Oyj vs. Alandsbanken Abp A | Sampo Oyj vs. Oma Saastopankki Oyj | Sampo Oyj vs. Tokmanni Group Oyj |
| Glaston Oyj vs. Bittium Oyj | Glaston Oyj vs. Tecnotree Oyj | Glaston Oyj vs. Exel Composites Oyj | Glaston Oyj 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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