Correlation Between Tokmanni Group and Consti Yhtiot
Can any of the company-specific risk be diversified away by investing in both Tokmanni Group and Consti Yhtiot 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 Tokmanni Group and Consti Yhtiot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tokmanni Group Oyj and Consti Yhtiot Oy, you can compare the effects of market volatilities on Tokmanni Group and Consti Yhtiot 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 Tokmanni Group with a short position of Consti Yhtiot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokmanni Group and Consti Yhtiot.
Diversification Opportunities for Tokmanni Group and Consti Yhtiot
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tokmanni and Consti is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Tokmanni Group Oyj and Consti Yhtiot Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consti Yhtiot Oy and Tokmanni Group 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 Tokmanni Group Oyj are associated (or correlated) with Consti Yhtiot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consti Yhtiot Oy has no effect on the direction of Tokmanni Group i.e., Tokmanni Group and Consti Yhtiot go up and down completely randomly.
Pair Corralation between Tokmanni Group and Consti Yhtiot
Assuming the 90 days trading horizon Tokmanni Group Oyj is expected to generate 1.2 times more return on investment than Consti Yhtiot. However, Tokmanni Group is 1.2 times more volatile than Consti Yhtiot Oy. It trades about 0.03 of its potential returns per unit of risk. Consti Yhtiot Oy is currently generating about 0.0 per unit of risk. If you would invest 1,174 in Tokmanni Group Oyj on November 28, 2024 and sell it today you would earn a total of 259.00 from holding Tokmanni Group Oyj or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Tokmanni Group Oyj vs. Consti Yhtiot Oy
Performance |
| Timeline |
| Tokmanni Group Oyj |
| Consti Yhtiot Oy |
Tokmanni Group and Consti Yhtiot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokmanni Group and Consti Yhtiot
The main advantage of trading using opposite Tokmanni Group and Consti Yhtiot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokmanni Group position performs unexpectedly, Consti Yhtiot 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 Consti Yhtiot will offset losses from the drop in Consti Yhtiot's long position.| Tokmanni Group vs. Sampo Oyj A | Tokmanni Group vs. Harvia Oyj | Tokmanni Group vs. Nordea Bank Abp | Tokmanni Group vs. Fortum Oyj |
| Consti Yhtiot vs. Tokmanni Group Oyj | Consti Yhtiot vs. Verkkokauppa Oyj | Consti Yhtiot vs. Innofactor Oyj | Consti Yhtiot vs. Aspocomp Group 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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