Correlation Between Tulikivi Oyj and Nurminen Logistics
Can any of the company-specific risk be diversified away by investing in both Tulikivi Oyj and Nurminen Logistics 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 Tulikivi Oyj and Nurminen Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tulikivi Oyj A and Nurminen Logistics Oyj, you can compare the effects of market volatilities on Tulikivi Oyj and Nurminen Logistics 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 Tulikivi Oyj with a short position of Nurminen Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tulikivi Oyj and Nurminen Logistics.
Diversification Opportunities for Tulikivi Oyj and Nurminen Logistics
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tulikivi and Nurminen is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tulikivi Oyj A and Nurminen Logistics Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurminen Logistics Oyj and Tulikivi Oyj 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 Tulikivi Oyj A are associated (or correlated) with Nurminen Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurminen Logistics Oyj has no effect on the direction of Tulikivi Oyj i.e., Tulikivi Oyj and Nurminen Logistics go up and down completely randomly.
Pair Corralation between Tulikivi Oyj and Nurminen Logistics
Assuming the 90 days trading horizon Tulikivi Oyj A is expected to under-perform the Nurminen Logistics. But the stock apears to be less risky and, when comparing its historical volatility, Tulikivi Oyj A is 1.47 times less risky than Nurminen Logistics. The stock trades about -0.02 of its potential returns per unit of risk. The Nurminen Logistics Oyj is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Nurminen Logistics Oyj on September 12, 2024 and sell it today you would earn a total of 37.00 from holding Nurminen Logistics Oyj or generate 62.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tulikivi Oyj A vs. Nurminen Logistics Oyj
Performance |
| Timeline |
| Tulikivi Oyj A |
| Nurminen Logistics Oyj |
Tulikivi Oyj and Nurminen Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tulikivi Oyj and Nurminen Logistics
The main advantage of trading using opposite Tulikivi Oyj and Nurminen Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tulikivi Oyj position performs unexpectedly, Nurminen Logistics 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 Nurminen Logistics will offset losses from the drop in Nurminen Logistics' long position.| Tulikivi Oyj vs. Nightingale Health Oyj | Tulikivi Oyj vs. Alma Media Oyj | Tulikivi Oyj vs. Alandsbanken Abp A | Tulikivi Oyj vs. QPR Software Oyj |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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