Correlation Between Tecnotree Oyj and HKFoods Oyj
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By analyzing existing cross correlation between Tecnotree Oyj and HKFoods Oyj A, you can compare the effects of market volatilities on Tecnotree Oyj 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 Tecnotree Oyj with a short position of HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tecnotree Oyj and HKFoods Oyj.
Diversification Opportunities for Tecnotree Oyj and HKFoods Oyj
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tecnotree and HKFoods is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tecnotree 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 Tecnotree 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 Tecnotree 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 Tecnotree Oyj i.e., Tecnotree Oyj and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Tecnotree Oyj and HKFoods Oyj
Assuming the 90 days trading horizon Tecnotree Oyj is expected to under-perform the HKFoods Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Tecnotree Oyj is 1.81 times less risky than HKFoods Oyj. The stock trades about -0.37 of its potential returns per unit of risk. The HKFoods Oyj A is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 75.00 in HKFoods Oyj A on August 28, 2024 and sell it today you would earn a total of 8.00 from holding HKFoods Oyj A or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tecnotree Oyj vs. HKFoods Oyj A
Performance |
| Timeline |
| Tecnotree Oyj |
| HKFoods Oyj A |
Tecnotree Oyj and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tecnotree Oyj and HKFoods Oyj
The main advantage of trading using opposite Tecnotree Oyj and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tecnotree Oyj 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.| Tecnotree Oyj vs. CapMan Oyj B | Tecnotree Oyj vs. HKFoods Oyj A | Tecnotree Oyj vs. KONE Oyj | Tecnotree Oyj vs. Exel Composites Oyj |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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