Correlation Between Viking Line and Alma Media
Can any of the company-specific risk be diversified away by investing in both Viking Line and Alma Media 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 Viking Line and Alma Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viking Line Abp and Alma Media Oyj, you can compare the effects of market volatilities on Viking Line and Alma Media 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 Viking Line with a short position of Alma Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Line and Alma Media.
Diversification Opportunities for Viking Line and Alma Media
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Viking and Alma is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Viking Line Abp and Alma Media Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alma Media Oyj and Viking Line 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 Viking Line Abp are associated (or correlated) with Alma Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alma Media Oyj has no effect on the direction of Viking Line i.e., Viking Line and Alma Media go up and down completely randomly.
Pair Corralation between Viking Line and Alma Media
Assuming the 90 days trading horizon Viking Line is expected to generate 17.44 times less return on investment than Alma Media. In addition to that, Viking Line is 1.33 times more volatile than Alma Media Oyj. It trades about 0.01 of its total potential returns per unit of risk. Alma Media Oyj is currently generating about 0.24 per unit of volatility. If you would invest 1,075 in Alma Media Oyj on September 12, 2024 and sell it today you would earn a total of 85.00 from holding Alma Media Oyj or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Viking Line Abp vs. Alma Media Oyj
Performance |
| Timeline |
| Viking Line Abp |
| Alma Media Oyj |
Viking Line and Alma Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Line and Alma Media
The main advantage of trading using opposite Viking Line and Alma Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Line position performs unexpectedly, Alma Media 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 Alma Media will offset losses from the drop in Alma Media's long position.| Viking Line vs. United Bankers Oyj | Viking Line vs. Nightingale Health Oyj | Viking Line vs. Detection Technology OY | Viking Line vs. Reka Industrial Oyj |
| Alma Media vs. Tokmanni Group Oyj | Alma Media vs. Kemira Oyj | Alma Media vs. Elisa Oyj | Alma Media vs. Valmet 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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