Correlation Between Teleste Oyj and Kemira Oyj
Can any of the company-specific risk be diversified away by investing in both Teleste Oyj and Kemira 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 Teleste Oyj and Kemira Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleste Oyj and Kemira Oyj, you can compare the effects of market volatilities on Teleste Oyj and Kemira 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 Teleste Oyj with a short position of Kemira Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleste Oyj and Kemira Oyj.
Diversification Opportunities for Teleste Oyj and Kemira Oyj
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleste and Kemira is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Teleste Oyj and Kemira Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kemira Oyj and Teleste 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 Teleste Oyj are associated (or correlated) with Kemira Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kemira Oyj has no effect on the direction of Teleste Oyj i.e., Teleste Oyj and Kemira Oyj go up and down completely randomly.
Pair Corralation between Teleste Oyj and Kemira Oyj
Assuming the 90 days trading horizon Teleste Oyj is expected to generate 1.83 times more return on investment than Kemira Oyj. However, Teleste Oyj is 1.83 times more volatile than Kemira Oyj. It trades about 0.18 of its potential returns per unit of risk. Kemira Oyj is currently generating about -0.22 per unit of risk. If you would invest 224.00 in Teleste Oyj on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Teleste Oyj or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Teleste Oyj vs. Kemira Oyj
Performance |
| Timeline |
| Teleste Oyj |
| Kemira Oyj |
Teleste Oyj and Kemira Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleste Oyj and Kemira Oyj
The main advantage of trading using opposite Teleste Oyj and Kemira Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleste Oyj position performs unexpectedly, Kemira 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 Kemira Oyj will offset losses from the drop in Kemira Oyj's long position.| Teleste Oyj vs. Kemira Oyj | Teleste Oyj vs. Atria Oyj A | Teleste Oyj vs. Bittium Oyj | Teleste Oyj vs. Raisio Oyj Vaihto osake |
| Kemira Oyj vs. Sampo Oyj A | Kemira Oyj vs. Fortum Oyj | Kemira Oyj vs. Nordea Bank Abp | Kemira Oyj vs. Stora Enso 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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