Correlation Between Viafin Service and Alandsbanken Abp
Can any of the company-specific risk be diversified away by investing in both Viafin Service and Alandsbanken Abp 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 Viafin Service and Alandsbanken Abp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viafin Service Oyj and Alandsbanken Abp B, you can compare the effects of market volatilities on Viafin Service and Alandsbanken Abp 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 Viafin Service with a short position of Alandsbanken Abp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viafin Service and Alandsbanken Abp.
Diversification Opportunities for Viafin Service and Alandsbanken Abp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Viafin and Alandsbanken is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Viafin Service Oyj and Alandsbanken Abp B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alandsbanken Abp B and Viafin Service 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 Viafin Service Oyj are associated (or correlated) with Alandsbanken Abp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alandsbanken Abp B has no effect on the direction of Viafin Service i.e., Viafin Service and Alandsbanken Abp go up and down completely randomly.
Pair Corralation between Viafin Service and Alandsbanken Abp
Assuming the 90 days trading horizon Viafin Service Oyj is expected to generate 1.16 times more return on investment than Alandsbanken Abp. However, Viafin Service is 1.16 times more volatile than Alandsbanken Abp B. It trades about 0.06 of its potential returns per unit of risk. Alandsbanken Abp B is currently generating about 0.01 per unit of risk. If you would invest 1,296 in Viafin Service Oyj on August 30, 2024 and sell it today you would earn a total of 644.00 from holding Viafin Service Oyj or generate 49.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viafin Service Oyj vs. Alandsbanken Abp B
Performance |
| Timeline |
| Viafin Service Oyj |
| Alandsbanken Abp B |
Viafin Service and Alandsbanken Abp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viafin Service and Alandsbanken Abp
The main advantage of trading using opposite Viafin Service and Alandsbanken Abp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viafin Service position performs unexpectedly, Alandsbanken Abp 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 Alandsbanken Abp will offset losses from the drop in Alandsbanken Abp's long position.| Viafin Service vs. SSH Communications Security | Viafin Service vs. Sotkamo Silver AB | Viafin Service vs. Reka Industrial Oyj | Viafin Service vs. United Bankers Oyj |
| Alandsbanken Abp vs. Aktia Bank Abp | Alandsbanken Abp vs. Alandsbanken Abp A | Alandsbanken Abp vs. Oma Saastopankki Oyj | Alandsbanken Abp vs. CapMan Oyj B |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |