Correlation Between SSH Communications and Tulikivi Oyj
Can any of the company-specific risk be diversified away by investing in both SSH Communications and Tulikivi 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 SSH Communications and Tulikivi Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSH Communications Security and Tulikivi Oyj A, you can compare the effects of market volatilities on SSH Communications and Tulikivi 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 SSH Communications with a short position of Tulikivi Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSH Communications and Tulikivi Oyj.
Diversification Opportunities for SSH Communications and Tulikivi Oyj
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SSH and Tulikivi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SSH Communications Security and Tulikivi Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tulikivi Oyj A 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 Tulikivi Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tulikivi Oyj A has no effect on the direction of SSH Communications i.e., SSH Communications and Tulikivi Oyj go up and down completely randomly.
Pair Corralation between SSH Communications and Tulikivi Oyj
Assuming the 90 days trading horizon SSH Communications Security is expected to under-perform the Tulikivi Oyj. But the stock apears to be less risky and, when comparing its historical volatility, SSH Communications Security is 1.25 times less risky than Tulikivi Oyj. The stock trades about -0.1 of its potential returns per unit of risk. The Tulikivi Oyj A is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Tulikivi Oyj A on October 24, 2024 and sell it today you would earn a total of 4.00 from holding Tulikivi Oyj A or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSH Communications Security vs. Tulikivi Oyj A
Performance |
| Timeline |
| SSH Communications |
| Tulikivi Oyj A |
SSH Communications and Tulikivi Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSH Communications and Tulikivi Oyj
The main advantage of trading using opposite SSH Communications and Tulikivi Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSH Communications position performs unexpectedly, Tulikivi 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 Tulikivi Oyj will offset losses from the drop in Tulikivi Oyj's long position.| SSH Communications vs. Tecnotree Oyj | SSH Communications vs. Qt Group Oyj | SSH Communications vs. Bittium Oyj | SSH Communications vs. Harvia Oyj |
| Tulikivi Oyj vs. SSH Communications Security | Tulikivi Oyj vs. Detection Technology OY | Tulikivi Oyj vs. Nightingale Health Oyj | Tulikivi Oyj vs. HKFoods 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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