Correlation Between Stora Enso and HKFoods Oyj
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By analyzing existing cross correlation between Stora Enso Oyj and HKFoods Oyj A, you can compare the effects of market volatilities on Stora Enso and HKFoods 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 Stora Enso with a short position of HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stora Enso and HKFoods Oyj.
Diversification Opportunities for Stora Enso and HKFoods Oyj
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stora and HKFoods is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Stora Enso Oyj and HKFoods Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HKFoods Oyj A and Stora Enso 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 Stora Enso Oyj are associated (or correlated) with HKFoods Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HKFoods Oyj A has no effect on the direction of Stora Enso i.e., Stora Enso and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Stora Enso and HKFoods Oyj
Assuming the 90 days trading horizon Stora Enso Oyj is expected to under-perform the HKFoods Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Stora Enso Oyj is 1.2 times less risky than HKFoods Oyj. The stock trades about -0.03 of its potential returns per unit of risk. The HKFoods Oyj A is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 70.00 in HKFoods Oyj A on August 27, 2024 and sell it today you would earn a total of 10.00 from holding HKFoods Oyj A or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 33.48% |
| Values | Daily Returns |
Stora Enso Oyj vs. HKFoods Oyj A
Performance |
| Timeline |
| Stora Enso Oyj |
| HKFoods Oyj A |
Stora Enso and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stora Enso and HKFoods Oyj
The main advantage of trading using opposite Stora Enso and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stora Enso position performs unexpectedly, HKFoods 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 HKFoods Oyj will offset losses from the drop in HKFoods Oyj's long position.| Stora Enso vs. Stora Enso Oyj | Stora Enso vs. UPM Kymmene Oyj | Stora Enso vs. Huhtamaki Oyj | Stora Enso vs. Orion Oyj A |
| HKFoods Oyj vs. Kamux Suomi Oy | HKFoods Oyj vs. Harvia Oyj | HKFoods Oyj vs. Qt Group Oyj | HKFoods Oyj vs. Tecnotree 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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