Correlation Between United Bankers and Oma Saastopankki
Can any of the company-specific risk be diversified away by investing in both United Bankers and Oma Saastopankki 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 United Bankers and Oma Saastopankki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Bankers Oyj and Oma Saastopankki Oyj, you can compare the effects of market volatilities on United Bankers and Oma Saastopankki 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 United Bankers with a short position of Oma Saastopankki. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Bankers and Oma Saastopankki.
Diversification Opportunities for United Bankers and Oma Saastopankki
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Oma is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding United Bankers Oyj and Oma Saastopankki Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oma Saastopankki Oyj and United Bankers 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 United Bankers Oyj are associated (or correlated) with Oma Saastopankki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oma Saastopankki Oyj has no effect on the direction of United Bankers i.e., United Bankers and Oma Saastopankki go up and down completely randomly.
Pair Corralation between United Bankers and Oma Saastopankki
Assuming the 90 days trading horizon United Bankers Oyj is expected to generate 0.92 times more return on investment than Oma Saastopankki. However, United Bankers Oyj is 1.09 times less risky than Oma Saastopankki. It trades about 0.08 of its potential returns per unit of risk. Oma Saastopankki Oyj is currently generating about -0.1 per unit of risk. If you would invest 1,315 in United Bankers Oyj on September 3, 2024 and sell it today you would earn a total of 520.00 from holding United Bankers Oyj or generate 39.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Bankers Oyj vs. Oma Saastopankki Oyj
Performance |
| Timeline |
| United Bankers Oyj |
| Oma Saastopankki Oyj |
United Bankers and Oma Saastopankki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Bankers and Oma Saastopankki
The main advantage of trading using opposite United Bankers and Oma Saastopankki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Bankers position performs unexpectedly, Oma Saastopankki 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 Oma Saastopankki will offset losses from the drop in Oma Saastopankki's long position.| United Bankers vs. CapMan Oyj B | United Bankers vs. HKFoods Oyj A | United Bankers vs. KONE Oyj | United Bankers vs. Solteq PLC |
| Oma Saastopankki vs. Kamux Suomi Oy | Oma Saastopankki vs. Harvia Oyj | Oma Saastopankki vs. TietoEVRY Corp | Oma Saastopankki vs. Tokmanni Group 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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