Correlation Between Tulikivi Oyj and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Tulikivi Oyj 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 Tulikivi Oyj and Sampo Oyj 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 Sampo Oyj A, you can compare the effects of market volatilities on Tulikivi Oyj 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 Tulikivi Oyj with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tulikivi Oyj and Sampo Oyj.
Diversification Opportunities for Tulikivi Oyj and Sampo Oyj
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tulikivi and Sampo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Tulikivi Oyj A 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 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 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 Tulikivi Oyj i.e., Tulikivi Oyj and Sampo Oyj go up and down completely randomly.
Pair Corralation between Tulikivi Oyj and Sampo Oyj
Assuming the 90 days trading horizon Tulikivi Oyj A is expected to under-perform the Sampo Oyj. In addition to that, Tulikivi Oyj is 2.03 times more volatile than Sampo Oyj A. It trades about -0.02 of its total potential returns per unit of risk. Sampo Oyj A is currently generating about 0.0 per unit of volatility. If you would invest 4,012 in Sampo Oyj A on September 14, 2024 and sell it today you would lose (58.00) from holding Sampo Oyj A or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tulikivi Oyj A vs. Sampo Oyj A
Performance |
| Timeline |
| Tulikivi Oyj A |
| Sampo Oyj A |
Tulikivi Oyj and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tulikivi Oyj and Sampo Oyj
The main advantage of trading using opposite Tulikivi Oyj and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tulikivi Oyj 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.| Tulikivi Oyj vs. Telefonaktiebolaget LM Ericsson | Tulikivi Oyj vs. KONE Oyj | Tulikivi Oyj vs. Nordea Bank Abp | Tulikivi Oyj vs. TietoEVRY Corp |
| Sampo Oyj vs. Tecnotree Oyj | Sampo Oyj vs. Aspo Oyj | Sampo Oyj vs. Finnair Oyj | Sampo Oyj vs. Tulikivi Oyj A |
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.
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