Correlation Between Tokmanni Group and WITHSECURE
Can any of the company-specific risk be diversified away by investing in both Tokmanni Group and WITHSECURE 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 WITHSECURE 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 WITHSECURE, you can compare the effects of market volatilities on Tokmanni Group and WITHSECURE 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 WITHSECURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokmanni Group and WITHSECURE.
Diversification Opportunities for Tokmanni Group and WITHSECURE
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tokmanni and WITHSECURE is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tokmanni Group Oyj and WITHSECURE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WITHSECURE 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 WITHSECURE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WITHSECURE has no effect on the direction of Tokmanni Group i.e., Tokmanni Group and WITHSECURE go up and down completely randomly.
Pair Corralation between Tokmanni Group and WITHSECURE
Assuming the 90 days trading horizon Tokmanni Group Oyj is expected to generate 0.86 times more return on investment than WITHSECURE. However, Tokmanni Group Oyj is 1.16 times less risky than WITHSECURE. It trades about 0.01 of its potential returns per unit of risk. WITHSECURE is currently generating about -0.03 per unit of risk. If you would invest 1,209 in Tokmanni Group Oyj on September 2, 2024 and sell it today you would lose (27.00) from holding Tokmanni Group Oyj or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tokmanni Group Oyj vs. WITHSECURE
Performance |
| Timeline |
| Tokmanni Group Oyj |
| WITHSECURE |
Tokmanni Group and WITHSECURE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokmanni Group and WITHSECURE
The main advantage of trading using opposite Tokmanni Group and WITHSECURE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokmanni Group position performs unexpectedly, WITHSECURE 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 WITHSECURE will offset losses from the drop in WITHSECURE'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 |
| WITHSECURE vs. F SECURE OYJ | WITHSECURE vs. Qt Group Oyj | WITHSECURE vs. Tokmanni Group Oyj | WITHSECURE vs. Harvia 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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