Correlation Between Siili Solutions and Glaston Oyj
Can any of the company-specific risk be diversified away by investing in both Siili Solutions 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 Siili Solutions and Glaston Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siili Solutions Oyj and Glaston Oyj Abp, you can compare the effects of market volatilities on Siili Solutions 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 Siili Solutions with a short position of Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siili Solutions and Glaston Oyj.
Diversification Opportunities for Siili Solutions and Glaston Oyj
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siili and Glaston is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Siili Solutions Oyj 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 Siili Solutions 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 Siili Solutions Oyj 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 Siili Solutions i.e., Siili Solutions and Glaston Oyj go up and down completely randomly.
Pair Corralation between Siili Solutions and Glaston Oyj
Assuming the 90 days trading horizon Siili Solutions Oyj is expected to under-perform the Glaston Oyj. In addition to that, Siili Solutions is 1.26 times more volatile than Glaston Oyj Abp. It trades about -0.11 of its total potential returns per unit of risk. Glaston Oyj Abp is currently generating about -0.05 per unit of volatility. If you would invest 83.00 in Glaston Oyj Abp on September 1, 2024 and sell it today you would lose (8.00) from holding Glaston Oyj Abp or give up 9.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siili Solutions Oyj vs. Glaston Oyj Abp
Performance |
| Timeline |
| Siili Solutions Oyj |
| Glaston Oyj Abp |
Siili Solutions and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siili Solutions and Glaston Oyj
The main advantage of trading using opposite Siili Solutions and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siili Solutions 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.| Siili Solutions vs. Qt Group Oyj | Siili Solutions vs. Revenio Group | Siili Solutions vs. Kamux Suomi Oy | Siili Solutions vs. Harvia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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