Correlation Between Scanfil Oyj and Tecnotree Oyj
Can any of the company-specific risk be diversified away by investing in both Scanfil Oyj and Tecnotree 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 Scanfil Oyj and Tecnotree Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scanfil Oyj and Tecnotree Oyj, you can compare the effects of market volatilities on Scanfil Oyj and Tecnotree 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 Scanfil Oyj with a short position of Tecnotree Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scanfil Oyj and Tecnotree Oyj.
Diversification Opportunities for Scanfil Oyj and Tecnotree Oyj
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Scanfil and Tecnotree is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Scanfil Oyj and Tecnotree Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecnotree Oyj and Scanfil 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 Scanfil Oyj are associated (or correlated) with Tecnotree Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecnotree Oyj has no effect on the direction of Scanfil Oyj i.e., Scanfil Oyj and Tecnotree Oyj go up and down completely randomly.
Pair Corralation between Scanfil Oyj and Tecnotree Oyj
Assuming the 90 days trading horizon Scanfil Oyj is expected to generate 0.48 times more return on investment than Tecnotree Oyj. However, Scanfil Oyj is 2.07 times less risky than Tecnotree Oyj. It trades about 0.02 of its potential returns per unit of risk. Tecnotree Oyj is currently generating about -0.09 per unit of risk. If you would invest 768.00 in Scanfil Oyj on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Scanfil Oyj or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scanfil Oyj vs. Tecnotree Oyj
Performance |
| Timeline |
| Scanfil Oyj |
| Tecnotree Oyj |
Scanfil Oyj and Tecnotree Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scanfil Oyj and Tecnotree Oyj
The main advantage of trading using opposite Scanfil Oyj and Tecnotree Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scanfil Oyj position performs unexpectedly, Tecnotree 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 Tecnotree Oyj will offset losses from the drop in Tecnotree Oyj's long position.| Scanfil Oyj vs. Tecnotree Oyj | Scanfil Oyj vs. Qt Group Oyj | Scanfil Oyj vs. Bittium Oyj | Scanfil Oyj vs. Harvia Oyj |
| Tecnotree Oyj vs. Harvia Oyj | Tecnotree Oyj vs. Qt Group Oyj | Tecnotree Oyj vs. Kamux Suomi Oy | Tecnotree 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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