Correlation Between UPM Kymmene and Partnera Oyj
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By analyzing existing cross correlation between UPM Kymmene Oyj and Partnera Oyj, you can compare the effects of market volatilities on UPM Kymmene and Partnera 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 UPM Kymmene with a short position of Partnera Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of UPM Kymmene and Partnera Oyj.
Diversification Opportunities for UPM Kymmene and Partnera Oyj
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UPM and Partnera is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding UPM Kymmene Oyj and Partnera Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partnera Oyj and UPM Kymmene 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 UPM Kymmene Oyj are associated (or correlated) with Partnera Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partnera Oyj has no effect on the direction of UPM Kymmene i.e., UPM Kymmene and Partnera Oyj go up and down completely randomly.
Pair Corralation between UPM Kymmene and Partnera Oyj
Assuming the 90 days trading horizon UPM Kymmene Oyj is expected to under-perform the Partnera Oyj. But the stock apears to be less risky and, when comparing its historical volatility, UPM Kymmene Oyj is 3.46 times less risky than Partnera Oyj. The stock trades about -0.31 of its potential returns per unit of risk. The Partnera Oyj is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Partnera Oyj on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Partnera Oyj or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UPM Kymmene Oyj vs. Partnera Oyj
Performance |
| Timeline |
| UPM Kymmene Oyj |
| Partnera Oyj |
UPM Kymmene and Partnera Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UPM Kymmene and Partnera Oyj
The main advantage of trading using opposite UPM Kymmene and Partnera Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UPM Kymmene position performs unexpectedly, Partnera 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 Partnera Oyj will offset losses from the drop in Partnera Oyj's long position.| UPM Kymmene vs. Sampo Oyj A | UPM Kymmene vs. Fortum Oyj | UPM Kymmene vs. Nordea Bank Abp | UPM Kymmene vs. Stora Enso Oyj |
| Partnera Oyj vs. Vincit Group Oyj | Partnera Oyj vs. Verkkokauppa Oyj | Partnera Oyj vs. Solteq PLC | Partnera Oyj 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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