Correlation Between Tokmanni Group and Spinnova
Can any of the company-specific risk be diversified away by investing in both Tokmanni Group and Spinnova 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 Spinnova 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 Spinnova Oy, you can compare the effects of market volatilities on Tokmanni Group and Spinnova 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 Spinnova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokmanni Group and Spinnova.
Diversification Opportunities for Tokmanni Group and Spinnova
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tokmanni and Spinnova is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tokmanni Group Oyj and Spinnova Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnova 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 Spinnova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnova Oy has no effect on the direction of Tokmanni Group i.e., Tokmanni Group and Spinnova go up and down completely randomly.
Pair Corralation between Tokmanni Group and Spinnova
Assuming the 90 days trading horizon Tokmanni Group Oyj is expected to generate 0.54 times more return on investment than Spinnova. However, Tokmanni Group Oyj is 1.85 times less risky than Spinnova. It trades about 0.02 of its potential returns per unit of risk. Spinnova Oy is currently generating about -0.09 per unit of risk. If you would invest 1,108 in Tokmanni Group Oyj on September 4, 2024 and sell it today you would earn a total of 96.00 from holding Tokmanni Group Oyj or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tokmanni Group Oyj vs. Spinnova Oy
Performance |
| Timeline |
| Tokmanni Group Oyj |
| Spinnova Oy |
Tokmanni Group and Spinnova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokmanni Group and Spinnova
The main advantage of trading using opposite Tokmanni Group and Spinnova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokmanni Group position performs unexpectedly, Spinnova 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 Spinnova will offset losses from the drop in Spinnova'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 |
| Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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