Correlation Between Verkkokauppa Oyj and Consti Yhtiot
Can any of the company-specific risk be diversified away by investing in both Verkkokauppa Oyj and Consti Yhtiot 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 Verkkokauppa Oyj and Consti Yhtiot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verkkokauppa Oyj and Consti Yhtiot Oy, you can compare the effects of market volatilities on Verkkokauppa Oyj and Consti Yhtiot 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 Verkkokauppa Oyj with a short position of Consti Yhtiot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verkkokauppa Oyj and Consti Yhtiot.
Diversification Opportunities for Verkkokauppa Oyj and Consti Yhtiot
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Verkkokauppa and Consti is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Verkkokauppa Oyj and Consti Yhtiot Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consti Yhtiot Oy and Verkkokauppa 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 Verkkokauppa Oyj are associated (or correlated) with Consti Yhtiot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consti Yhtiot Oy has no effect on the direction of Verkkokauppa Oyj i.e., Verkkokauppa Oyj and Consti Yhtiot go up and down completely randomly.
Pair Corralation between Verkkokauppa Oyj and Consti Yhtiot
Assuming the 90 days trading horizon Verkkokauppa Oyj is expected to under-perform the Consti Yhtiot. In addition to that, Verkkokauppa Oyj is 1.39 times more volatile than Consti Yhtiot Oy. It trades about -0.02 of its total potential returns per unit of risk. Consti Yhtiot Oy is currently generating about 0.0 per unit of volatility. If you would invest 1,054 in Consti Yhtiot Oy on November 28, 2024 and sell it today you would lose (62.00) from holding Consti Yhtiot Oy or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Verkkokauppa Oyj vs. Consti Yhtiot Oy
Performance |
| Timeline |
| Verkkokauppa Oyj |
| Consti Yhtiot Oy |
Verkkokauppa Oyj and Consti Yhtiot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verkkokauppa Oyj and Consti Yhtiot
The main advantage of trading using opposite Verkkokauppa Oyj and Consti Yhtiot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verkkokauppa Oyj position performs unexpectedly, Consti Yhtiot 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 Consti Yhtiot will offset losses from the drop in Consti Yhtiot's long position.| Verkkokauppa Oyj vs. Tokmanni Group Oyj | Verkkokauppa Oyj vs. Harvia Oyj | Verkkokauppa Oyj vs. Sampo Oyj A | Verkkokauppa Oyj vs. Kamux Suomi Oy |
| Consti Yhtiot vs. Tokmanni Group Oyj | Consti Yhtiot vs. Verkkokauppa Oyj | Consti Yhtiot vs. Innofactor Oyj | Consti Yhtiot vs. Aspocomp 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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