Correlation Between SSH Communications and Viafin Service
Can any of the company-specific risk be diversified away by investing in both SSH Communications and Viafin Service 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 Viafin Service 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 Viafin Service Oyj, you can compare the effects of market volatilities on SSH Communications and Viafin Service 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 Viafin Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSH Communications and Viafin Service.
Diversification Opportunities for SSH Communications and Viafin Service
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SSH and Viafin is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SSH Communications Security and Viafin Service Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viafin Service Oyj 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 Viafin Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viafin Service Oyj has no effect on the direction of SSH Communications i.e., SSH Communications and Viafin Service go up and down completely randomly.
Pair Corralation between SSH Communications and Viafin Service
Assuming the 90 days trading horizon SSH Communications Security is expected to under-perform the Viafin Service. In addition to that, SSH Communications is 2.41 times more volatile than Viafin Service Oyj. It trades about -0.07 of its total potential returns per unit of risk. Viafin Service Oyj is currently generating about 0.16 per unit of volatility. If you would invest 1,840 in Viafin Service Oyj on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Viafin Service Oyj or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSH Communications Security vs. Viafin Service Oyj
Performance |
| Timeline |
| SSH Communications |
| Viafin Service Oyj |
SSH Communications and Viafin Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSH Communications and Viafin Service
The main advantage of trading using opposite SSH Communications and Viafin Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSH Communications position performs unexpectedly, Viafin Service 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 Viafin Service will offset losses from the drop in Viafin Service's long position.| SSH Communications vs. Tecnotree Oyj | SSH Communications vs. Qt Group Oyj | SSH Communications vs. Bittium Oyj | SSH Communications vs. Harvia Oyj |
| Viafin Service vs. Detection Technology OY | Viafin Service vs. HKFoods Oyj A | Viafin Service vs. Aiforia Technologies Oyj | Viafin Service vs. United Bankers 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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