Correlation Between SSH Communications and OMX Helsinki
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By analyzing existing cross correlation between SSH Communications Security and OMX Helsinki 25, you can compare the effects of market volatilities on SSH Communications and OMX Helsinki 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 SSH Communications with a short position of OMX Helsinki. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSH Communications and OMX Helsinki.
Diversification Opportunities for SSH Communications and OMX Helsinki
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SSH and OMX is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SSH Communications Security and OMX Helsinki 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Helsinki 25 and SSH Communications 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 SSH Communications Security are associated (or correlated) with OMX Helsinki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Helsinki 25 has no effect on the direction of SSH Communications i.e., SSH Communications and OMX Helsinki go up and down completely randomly.
Pair Corralation between SSH Communications and OMX Helsinki
Assuming the 90 days trading horizon SSH Communications Security is expected to under-perform the OMX Helsinki. In addition to that, SSH Communications is 3.78 times more volatile than OMX Helsinki 25. It trades about -0.1 of its total potential returns per unit of risk. OMX Helsinki 25 is currently generating about -0.28 per unit of volatility. If you would invest 473,564 in OMX Helsinki 25 on August 30, 2024 and sell it today you would lose (42,496) from holding OMX Helsinki 25 or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSH Communications Security vs. OMX Helsinki 25
Performance |
| Timeline |
SSH Communications and OMX Helsinki Volatility Contrast
Predicted Return Density |
| Returns |
SSH Communications Security
Pair trading matchups for SSH Communications
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Pair Trading with SSH Communications and OMX Helsinki
The main advantage of trading using opposite SSH Communications and OMX Helsinki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSH Communications position performs unexpectedly, OMX Helsinki 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 OMX Helsinki will offset losses from the drop in OMX Helsinki's long position.| SSH Communications vs. Tecnotree Oyj | SSH Communications vs. Qt Group Oyj | SSH Communications vs. Harvia Oyj | SSH Communications vs. Kamux Suomi Oy |
| OMX Helsinki vs. SSH Communications Security | OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. Reka Industrial Oyj | OMX Helsinki vs. Nordea Bank Abp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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