Correlation Between UGE International and Fortum Oyj
Can any of the company-specific risk be diversified away by investing in both UGE International and Fortum 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 UGE International and Fortum Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UGE International and Fortum Oyj, you can compare the effects of market volatilities on UGE International and Fortum 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 UGE International with a short position of Fortum Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of UGE International and Fortum Oyj.
Diversification Opportunities for UGE International and Fortum Oyj
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between UGE and Fortum is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding UGE International and Fortum Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortum Oyj and UGE International 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 UGE International are associated (or correlated) with Fortum Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortum Oyj has no effect on the direction of UGE International i.e., UGE International and Fortum Oyj go up and down completely randomly.
Pair Corralation between UGE International and Fortum Oyj
If you would invest 146.00 in UGE International on August 28, 2024 and sell it today you would earn a total of 0.00 from holding UGE International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
UGE International vs. Fortum Oyj
Performance |
| Timeline |
| UGE International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fortum Oyj |
UGE International and Fortum Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UGE International and Fortum Oyj
The main advantage of trading using opposite UGE International and Fortum Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UGE International position performs unexpectedly, Fortum 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 Fortum Oyj will offset losses from the drop in Fortum Oyj's long position.| UGE International vs. Fortum Oyj ADR | UGE International vs. Astra Energy | UGE International vs. Powertap Hydrogen Capital | UGE International vs. Brenmiller Energy Ltd |
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 CEOs Directory module to screen CEOs from public companies around the world.
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