Correlation Between Spinnova and Nanoform Finland
Can any of the company-specific risk be diversified away by investing in both Spinnova and Nanoform Finland 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 Nanoform Finland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnova Oy and Nanoform Finland Plc, you can compare the effects of market volatilities on Spinnova and Nanoform Finland 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 Nanoform Finland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnova and Nanoform Finland.
Diversification Opportunities for Spinnova and Nanoform Finland
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spinnova and Nanoform is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Spinnova Oy and Nanoform Finland Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanoform Finland Plc 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 Nanoform Finland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanoform Finland Plc has no effect on the direction of Spinnova i.e., Spinnova and Nanoform Finland go up and down completely randomly.
Pair Corralation between Spinnova and Nanoform Finland
Assuming the 90 days trading horizon Spinnova Oy is expected to under-perform the Nanoform Finland. In addition to that, Spinnova is 1.13 times more volatile than Nanoform Finland Plc. It trades about -0.04 of its total potential returns per unit of risk. Nanoform Finland Plc is currently generating about -0.01 per unit of volatility. If you would invest 165.00 in Nanoform Finland Plc on August 26, 2024 and sell it today you would lose (31.00) from holding Nanoform Finland Plc or give up 18.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spinnova Oy vs. Nanoform Finland Plc
Performance |
| Timeline |
| Spinnova Oy |
| Nanoform Finland Plc |
Spinnova and Nanoform Finland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnova and Nanoform Finland
The main advantage of trading using opposite Spinnova and Nanoform Finland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnova position performs unexpectedly, Nanoform Finland 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 Nanoform Finland will offset losses from the drop in Nanoform Finland's long position.| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
| Nanoform Finland vs. Spinnova Oy | Nanoform Finland vs. Qt Group Oyj | Nanoform Finland vs. Kempower Oyj | Nanoform Finland vs. Harvia 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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