Correlation Between SSAB AB and Orion Oyj
Can any of the company-specific risk be diversified away by investing in both SSAB AB and Orion 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 SSAB AB and Orion Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSAB AB ser and Orion Oyj B, you can compare the effects of market volatilities on SSAB AB and Orion 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 SSAB AB with a short position of Orion Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAB AB and Orion Oyj.
Diversification Opportunities for SSAB AB and Orion Oyj
Very good diversification
The 3 months correlation between SSAB and Orion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding SSAB AB ser and Orion Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orion Oyj B and SSAB AB 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 SSAB AB ser are associated (or correlated) with Orion Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orion Oyj B has no effect on the direction of SSAB AB i.e., SSAB AB and Orion Oyj go up and down completely randomly.
Pair Corralation between SSAB AB and Orion Oyj
Assuming the 90 days trading horizon SSAB AB ser is expected to under-perform the Orion Oyj. In addition to that, SSAB AB is 1.38 times more volatile than Orion Oyj B. It trades about -0.08 of its total potential returns per unit of risk. Orion Oyj B is currently generating about 0.11 per unit of volatility. If you would invest 3,695 in Orion Oyj B on August 24, 2024 and sell it today you would earn a total of 744.00 from holding Orion Oyj B or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSAB AB ser vs. Orion Oyj B
Performance |
| Timeline |
| SSAB AB ser |
| Orion Oyj B |
SSAB AB and Orion Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSAB AB and Orion Oyj
The main advantage of trading using opposite SSAB AB and Orion Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAB AB position performs unexpectedly, Orion 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 Orion Oyj will offset losses from the drop in Orion Oyj's long position.| SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Nordea Bank Abp | SSAB AB vs. Telia Company AB | SSAB AB vs. Wartsila Oyj Abp |
| Orion Oyj vs. Nexstim Oyj | Orion Oyj vs. Tokmanni Group Oyj | Orion Oyj vs. Kamux Suomi Oy | Orion Oyj vs. Vaisala Oyj A |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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