Correlation Between Sampo Oyj and Kamux Suomi
Can any of the company-specific risk be diversified away by investing in both Sampo Oyj and Kamux Suomi 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 Kamux Suomi 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 Kamux Suomi Oy, you can compare the effects of market volatilities on Sampo Oyj and Kamux Suomi 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 Kamux Suomi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and Kamux Suomi.
Diversification Opportunities for Sampo Oyj and Kamux Suomi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sampo and Kamux is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj A and Kamux Suomi Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamux Suomi Oy 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 Kamux Suomi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamux Suomi Oy has no effect on the direction of Sampo Oyj i.e., Sampo Oyj and Kamux Suomi go up and down completely randomly.
Pair Corralation between Sampo Oyj and Kamux Suomi
Assuming the 90 days trading horizon Sampo Oyj is expected to generate 37.01 times less return on investment than Kamux Suomi. But when comparing it to its historical volatility, Sampo Oyj A is 2.2 times less risky than Kamux Suomi. It trades about 0.01 of its potential returns per unit of risk. Kamux Suomi Oy is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Kamux Suomi Oy on November 3, 2024 and sell it today you would earn a total of 28.00 from holding Kamux Suomi Oy or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sampo Oyj A vs. Kamux Suomi Oy
Performance |
| Timeline |
| Sampo Oyj A |
| Kamux Suomi Oy |
Sampo Oyj and Kamux Suomi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Oyj and Kamux Suomi
The main advantage of trading using opposite Sampo Oyj and Kamux Suomi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj position performs unexpectedly, Kamux Suomi 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 Kamux Suomi will offset losses from the drop in Kamux Suomi'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 |
| Kamux Suomi vs. Harvia Oyj | Kamux Suomi vs. Qt Group Oyj | Kamux Suomi vs. Tokmanni Group Oyj | Kamux Suomi vs. Sampo Oyj A |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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