Correlation Between SSH Communications and Wulff Yhtiot
Can any of the company-specific risk be diversified away by investing in both SSH Communications and Wulff Yhtiot 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 Wulff Yhtiot 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 Wulff Yhtiot Oy, you can compare the effects of market volatilities on SSH Communications and Wulff Yhtiot 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 Wulff Yhtiot. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSH Communications and Wulff Yhtiot.
Diversification Opportunities for SSH Communications and Wulff Yhtiot
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SSH and Wulff is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SSH Communications Security and Wulff Yhtiot Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wulff Yhtiot Oy 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 Wulff Yhtiot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wulff Yhtiot Oy has no effect on the direction of SSH Communications i.e., SSH Communications and Wulff Yhtiot go up and down completely randomly.
Pair Corralation between SSH Communications and Wulff Yhtiot
Assuming the 90 days trading horizon SSH Communications Security is expected to under-perform the Wulff Yhtiot. In addition to that, SSH Communications is 1.1 times more volatile than Wulff Yhtiot Oy. It trades about -0.02 of its total potential returns per unit of risk. Wulff Yhtiot Oy is currently generating about 0.01 per unit of volatility. If you would invest 302.00 in Wulff Yhtiot Oy on September 4, 2024 and sell it today you would lose (10.00) from holding Wulff Yhtiot Oy or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSH Communications Security vs. Wulff Yhtiot Oy
Performance |
| Timeline |
| SSH Communications |
| Wulff Yhtiot Oy |
SSH Communications and Wulff Yhtiot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSH Communications and Wulff Yhtiot
The main advantage of trading using opposite SSH Communications and Wulff Yhtiot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSH Communications position performs unexpectedly, Wulff Yhtiot 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 Wulff Yhtiot will offset losses from the drop in Wulff Yhtiot's long position.| SSH Communications vs. Tecnotree Oyj | SSH Communications vs. Qt Group Oyj | SSH Communications vs. Bittium Oyj | SSH Communications vs. Harvia Oyj |
| Wulff Yhtiot vs. Alandsbanken Abp A | Wulff Yhtiot vs. Reka Industrial Oyj | Wulff Yhtiot vs. Detection Technology OY | Wulff Yhtiot vs. Alma Media 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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