Correlation Between Tradegate and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Tradegate and Fiskars 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 Tradegate and Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Fiskars Oyj Abp, you can compare the effects of market volatilities on Tradegate and Fiskars 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 Tradegate with a short position of Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Fiskars Oyj.
Diversification Opportunities for Tradegate and Fiskars Oyj
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tradegate and Fiskars is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Tradegate i.e., Tradegate and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Tradegate and Fiskars Oyj
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to under-perform the Fiskars Oyj. In addition to that, Tradegate is 1.05 times more volatile than Fiskars Oyj Abp. It trades about -0.05 of its total potential returns per unit of risk. Fiskars Oyj Abp is currently generating about -0.04 per unit of volatility. If you would invest 1,631 in Fiskars Oyj Abp on September 14, 2024 and sell it today you would lose (225.00) from holding Fiskars Oyj Abp or give up 13.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Fiskars Oyj Abp |
Tradegate and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Fiskars Oyj
The main advantage of trading using opposite Tradegate and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, Fiskars 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Tradegate vs. Superior Plus Corp | Tradegate vs. SIVERS SEMICONDUCTORS AB | Tradegate vs. CHINA HUARONG ENERHD 50 | Tradegate vs. NORDIC HALIBUT AS |
| Fiskars Oyj vs. Strategic Investments AS | Fiskars Oyj vs. AAC TECHNOLOGHLDGADR | Fiskars Oyj vs. PKSHA TECHNOLOGY INC | Fiskars Oyj vs. NetSol Technologies |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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