Correlation Between Spinnova and Puuilo Oyj
Can any of the company-specific risk be diversified away by investing in both Spinnova and Puuilo 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 Puuilo 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 Puuilo Oyj, you can compare the effects of market volatilities on Spinnova and Puuilo 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 Puuilo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnova and Puuilo Oyj.
Diversification Opportunities for Spinnova and Puuilo Oyj
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spinnova and Puuilo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Spinnova Oy and Puuilo Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puuilo 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 Puuilo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puuilo Oyj has no effect on the direction of Spinnova i.e., Spinnova and Puuilo Oyj go up and down completely randomly.
Pair Corralation between Spinnova and Puuilo Oyj
Assuming the 90 days trading horizon Spinnova Oy is expected to under-perform the Puuilo Oyj. In addition to that, Spinnova is 4.66 times more volatile than Puuilo Oyj. It trades about -0.04 of its total potential returns per unit of risk. Puuilo Oyj is currently generating about 0.13 per unit of volatility. If you would invest 911.00 in Puuilo Oyj on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Puuilo Oyj or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spinnova Oy vs. Puuilo Oyj
Performance |
| Timeline |
| Spinnova Oy |
| Puuilo Oyj |
Spinnova and Puuilo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnova and Puuilo Oyj
The main advantage of trading using opposite Spinnova and Puuilo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnova position performs unexpectedly, Puuilo 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 Puuilo Oyj will offset losses from the drop in Puuilo Oyj's long position.| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
| Puuilo Oyj vs. Kamux Suomi Oy | Puuilo Oyj vs. Harvia Oyj | Puuilo Oyj vs. Qt Group Oyj | Puuilo Oyj vs. Tecnotree 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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