Correlation Between Tokmanni Group and Sampo Oyj

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Tokmanni Group and Sampo 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 Tokmanni Group and Sampo Oyj 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 Sampo Oyj A, you can compare the effects of market volatilities on Tokmanni Group and Sampo 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 Tokmanni Group with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokmanni Group and Sampo Oyj.

Diversification Opportunities for Tokmanni Group and Sampo Oyj

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Tokmanni and Sampo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tokmanni Group Oyj and Sampo Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj A 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj A has no effect on the direction of Tokmanni Group i.e., Tokmanni Group and Sampo Oyj go up and down completely randomly.

Pair Corralation between Tokmanni Group and Sampo Oyj

Assuming the 90 days trading horizon Tokmanni Group Oyj is expected to generate 4.79 times more return on investment than Sampo Oyj. However, Tokmanni Group is 4.79 times more volatile than Sampo Oyj A. It trades about 0.18 of its potential returns per unit of risk. Sampo Oyj A is currently generating about -0.13 per unit of risk. If you would invest  1,040  in Tokmanni Group Oyj on August 28, 2024 and sell it today you would earn a total of  139.00  from holding Tokmanni Group Oyj or generate 13.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Tokmanni Group Oyj  vs.  Sampo Oyj A

 Performance 
       Timeline  
Tokmanni Group Oyj 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Tokmanni Group Oyj are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent forward-looking signals, Tokmanni Group sustained solid returns over the last few months and may actually be approaching a breakup point.
Sampo Oyj A 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sampo Oyj A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Sampo Oyj is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Tokmanni Group and Sampo Oyj Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Tokmanni Group and Sampo Oyj

The main advantage of trading using opposite Tokmanni Group and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokmanni Group position performs unexpectedly, Sampo 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 Sampo Oyj will offset losses from the drop in Sampo Oyj's long position.
The idea behind Tokmanni Group Oyj and Sampo Oyj A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios