Correlation Between Spinnova and Aspo Oyj
Can any of the company-specific risk be diversified away by investing in both Spinnova and Aspo 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 Spinnova and Aspo Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnova Oy and Aspo Oyj, you can compare the effects of market volatilities on Spinnova and Aspo 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 Spinnova with a short position of Aspo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnova and Aspo Oyj.
Diversification Opportunities for Spinnova and Aspo Oyj
Very poor diversification
The 3 months correlation between Spinnova and Aspo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Spinnova Oy and Aspo Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspo Oyj and Spinnova 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 Spinnova Oy are associated (or correlated) with Aspo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspo Oyj has no effect on the direction of Spinnova i.e., Spinnova and Aspo Oyj go up and down completely randomly.
Pair Corralation between Spinnova and Aspo Oyj
Assuming the 90 days trading horizon Spinnova Oy is expected to under-perform the Aspo Oyj. In addition to that, Spinnova is 3.28 times more volatile than Aspo Oyj. It trades about -0.54 of its total potential returns per unit of risk. Aspo Oyj is currently generating about -0.59 per unit of volatility. If you would invest 584.00 in Aspo Oyj on August 27, 2024 and sell it today you would lose (78.00) from holding Aspo Oyj or give up 13.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spinnova Oy vs. Aspo Oyj
Performance |
| Timeline |
| Spinnova Oy |
| Aspo Oyj |
Spinnova and Aspo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnova and Aspo Oyj
The main advantage of trading using opposite Spinnova and Aspo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnova position performs unexpectedly, Aspo 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 Aspo Oyj will offset losses from the drop in Aspo Oyj's long position.| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
| Aspo Oyj vs. Tokmanni Group Oyj | Aspo Oyj vs. Kemira Oyj | Aspo Oyj vs. TietoEVRY Corp | Aspo Oyj vs. CapMan Oyj B |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |