Correlation Between Tokmanni Group and Vaisala Oyj
Can any of the company-specific risk be diversified away by investing in both Tokmanni Group and Vaisala 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 Vaisala 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 Vaisala Oyj A, you can compare the effects of market volatilities on Tokmanni Group and Vaisala 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 Vaisala Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokmanni Group and Vaisala Oyj.
Diversification Opportunities for Tokmanni Group and Vaisala Oyj
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tokmanni and Vaisala is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tokmanni Group Oyj and Vaisala Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaisala 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 Vaisala Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaisala Oyj A has no effect on the direction of Tokmanni Group i.e., Tokmanni Group and Vaisala Oyj go up and down completely randomly.
Pair Corralation between Tokmanni Group and Vaisala Oyj
Assuming the 90 days trading horizon Tokmanni Group Oyj is expected to generate 2.02 times more return on investment than Vaisala Oyj. However, Tokmanni Group is 2.02 times more volatile than Vaisala Oyj A. It trades about 0.17 of its potential returns per unit of risk. Vaisala Oyj A is currently generating about 0.12 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tokmanni Group Oyj vs. Vaisala Oyj A
Performance |
| Timeline |
| Tokmanni Group Oyj |
| Vaisala Oyj A |
Tokmanni Group and Vaisala Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokmanni Group and Vaisala Oyj
The main advantage of trading using opposite Tokmanni Group and Vaisala Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokmanni Group position performs unexpectedly, Vaisala 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 Vaisala Oyj will offset losses from the drop in Vaisala Oyj'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 |
| Vaisala Oyj vs. Revenio Group | Vaisala Oyj vs. Ponsse Oyj 1 | Vaisala Oyj vs. Wartsila Oyj Abp | Vaisala Oyj vs. Cargotec 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |