Correlation Between Viking Line and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Viking Line and Sampo Oyj 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 Sampo Oyj 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 Sampo Oyj A, you can compare the effects of market volatilities on Viking Line and Sampo 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 Viking Line with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Line and Sampo Oyj.
Diversification Opportunities for Viking Line and Sampo Oyj
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Viking and Sampo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Viking Line Abp and Sampo Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj A 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj A has no effect on the direction of Viking Line i.e., Viking Line and Sampo Oyj go up and down completely randomly.
Pair Corralation between Viking Line and Sampo Oyj
Assuming the 90 days trading horizon Viking Line Abp is expected to generate 1.72 times more return on investment than Sampo Oyj. However, Viking Line is 1.72 times more volatile than Sampo Oyj A. It trades about -0.04 of its potential returns per unit of risk. Sampo Oyj A is currently generating about -0.08 per unit of risk. If you would invest 2,050 in Viking Line Abp on August 30, 2024 and sell it today you would lose (30.00) from holding Viking Line Abp or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viking Line Abp vs. Sampo Oyj A
Performance |
| Timeline |
| Viking Line Abp |
| Sampo Oyj A |
Viking Line and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Line and Sampo Oyj
The main advantage of trading using opposite Viking Line and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Line position performs unexpectedly, Sampo 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 Sampo Oyj will offset losses from the drop in Sampo Oyj's long position.| Viking Line vs. Harvia Oyj | Viking Line vs. Kamux Suomi Oy | Viking Line vs. Qt Group Oyj | Viking Line vs. Revenio Group |
| Sampo Oyj vs. Aktia Bank Abp | Sampo Oyj vs. Alandsbanken Abp A | Sampo Oyj vs. Oma Saastopankki Oyj | Sampo 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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