Correlation Between Sampo Oyj and Revenio
Can any of the company-specific risk be diversified away by investing in both Sampo Oyj and Revenio 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 Revenio 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 Revenio Group, you can compare the effects of market volatilities on Sampo Oyj and Revenio 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 Revenio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and Revenio.
Diversification Opportunities for Sampo Oyj and Revenio
Modest diversification
The 3 months correlation between Sampo and Revenio is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj A and Revenio Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revenio Group 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 Revenio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revenio Group has no effect on the direction of Sampo Oyj i.e., Sampo Oyj and Revenio go up and down completely randomly.
Pair Corralation between Sampo Oyj and Revenio
Assuming the 90 days trading horizon Sampo Oyj is expected to generate 47.69 times less return on investment than Revenio. But when comparing it to its historical volatility, Sampo Oyj A is 2.3 times less risky than Revenio. It trades about 0.01 of its potential returns per unit of risk. Revenio Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,710 in Revenio Group on November 3, 2024 and sell it today you would earn a total of 384.00 from holding Revenio Group or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sampo Oyj A vs. Revenio Group
Performance |
| Timeline |
| Sampo Oyj A |
| Revenio Group |
Sampo Oyj and Revenio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Oyj and Revenio
The main advantage of trading using opposite Sampo Oyj and Revenio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj position performs unexpectedly, Revenio 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 Revenio will offset losses from the drop in Revenio'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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