Correlation Between Siili Solutions and Kesla Oyj
Can any of the company-specific risk be diversified away by investing in both Siili Solutions and Kesla 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 Kesla 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 Kesla Oyj A, you can compare the effects of market volatilities on Siili Solutions and Kesla 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 Kesla Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siili Solutions and Kesla Oyj.
Diversification Opportunities for Siili Solutions and Kesla Oyj
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siili and Kesla is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Siili Solutions Oyj and Kesla Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kesla Oyj A 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 Kesla Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kesla Oyj A has no effect on the direction of Siili Solutions i.e., Siili Solutions and Kesla Oyj go up and down completely randomly.
Pair Corralation between Siili Solutions and Kesla Oyj
Assuming the 90 days trading horizon Siili Solutions Oyj is expected to under-perform the Kesla Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Siili Solutions Oyj is 1.02 times less risky than Kesla Oyj. The stock trades about -0.11 of its potential returns per unit of risk. The Kesla Oyj A is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Kesla Oyj A on September 1, 2024 and sell it today you would lose (28.00) from holding Kesla Oyj A or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siili Solutions Oyj vs. Kesla Oyj A
Performance |
| Timeline |
| Siili Solutions Oyj |
| Kesla Oyj A |
Siili Solutions and Kesla Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siili Solutions and Kesla Oyj
The main advantage of trading using opposite Siili Solutions and Kesla Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siili Solutions position performs unexpectedly, Kesla 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 Kesla Oyj will offset losses from the drop in Kesla 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 |
| Kesla Oyj vs. Honkarakenne Oyj B | Kesla Oyj vs. Innofactor Oyj | Kesla Oyj vs. Raute Oyj | Kesla Oyj vs. Exel Composites 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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