Correlation Between Sampo Oyj and Kempower Oyj
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By analyzing existing cross correlation between Sampo Oyj A and Kempower Oyj, you can compare the effects of market volatilities on Sampo Oyj and Kempower 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 Kempower Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and Kempower Oyj.
Diversification Opportunities for Sampo Oyj and Kempower Oyj
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sampo and Kempower is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj A and Kempower Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempower Oyj 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 Kempower Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempower Oyj has no effect on the direction of Sampo Oyj i.e., Sampo Oyj and Kempower Oyj go up and down completely randomly.
Pair Corralation between Sampo Oyj and Kempower Oyj
Assuming the 90 days trading horizon Sampo Oyj A is expected to generate 0.29 times more return on investment than Kempower Oyj. However, Sampo Oyj A is 3.47 times less risky than Kempower Oyj. It trades about 0.01 of its potential returns per unit of risk. Kempower Oyj is currently generating about -0.03 per unit of risk. If you would invest 3,978 in Sampo Oyj A on August 31, 2024 and sell it today you would earn a total of 92.00 from holding Sampo Oyj A or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sampo Oyj A vs. Kempower Oyj
Performance |
| Timeline |
| Sampo Oyj A |
| Kempower Oyj |
Sampo Oyj and Kempower Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Oyj and Kempower Oyj
The main advantage of trading using opposite Sampo Oyj and Kempower Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj position performs unexpectedly, Kempower 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 Kempower Oyj will offset losses from the drop in Kempower Oyj's long position.| Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Telia Company AB | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. SSAB AB ser |
| Kempower Oyj vs. Nightingale Health Oyj | Kempower Oyj vs. Trainers House Oyj | Kempower Oyj vs. SSH Communications Security | Kempower Oyj vs. Aiforia Technologies 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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