Correlation Between Taaleri Oyj and CapMan Oyj
Can any of the company-specific risk be diversified away by investing in both Taaleri Oyj and CapMan 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 Taaleri Oyj and CapMan Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taaleri Oyj and CapMan Oyj B, you can compare the effects of market volatilities on Taaleri Oyj and CapMan 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 Taaleri Oyj with a short position of CapMan Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taaleri Oyj and CapMan Oyj.
Diversification Opportunities for Taaleri Oyj and CapMan Oyj
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Taaleri and CapMan is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Taaleri Oyj and CapMan Oyj B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapMan Oyj B and Taaleri Oyj 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 Taaleri Oyj are associated (or correlated) with CapMan Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapMan Oyj B has no effect on the direction of Taaleri Oyj i.e., Taaleri Oyj and CapMan Oyj go up and down completely randomly.
Pair Corralation between Taaleri Oyj and CapMan Oyj
Assuming the 90 days trading horizon Taaleri Oyj is expected to under-perform the CapMan Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Taaleri Oyj is 1.65 times less risky than CapMan Oyj. The stock trades about -0.01 of its potential returns per unit of risk. The CapMan Oyj B is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 173.00 in CapMan Oyj B on November 18, 2024 and sell it today you would earn a total of 19.00 from holding CapMan Oyj B or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taaleri Oyj vs. CapMan Oyj B
Performance |
| Timeline |
| Taaleri Oyj |
| CapMan Oyj B |
Taaleri Oyj and CapMan Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taaleri Oyj and CapMan Oyj
The main advantage of trading using opposite Taaleri Oyj and CapMan Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taaleri Oyj position performs unexpectedly, CapMan 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 CapMan Oyj will offset losses from the drop in CapMan Oyj's long position.| Taaleri Oyj vs. CapMan Oyj B | Taaleri Oyj vs. Kamux Suomi Oy | Taaleri Oyj vs. Tokmanni Group Oyj | Taaleri Oyj vs. Harvia Oyj |
| CapMan Oyj vs. Trainers House Oyj | CapMan Oyj vs. United Bankers Oyj | CapMan Oyj vs. Remedy Entertainment Oyj | CapMan Oyj 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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