Correlation Between CONCORDIA FINL and Nokia
Can any of the company-specific risk be diversified away by investing in both CONCORDIA FINL and Nokia 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 CONCORDIA FINL and Nokia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONCORDIA FINL GROUP and Nokia, you can compare the effects of market volatilities on CONCORDIA FINL and Nokia 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 CONCORDIA FINL with a short position of Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONCORDIA FINL and Nokia.
Diversification Opportunities for CONCORDIA FINL and Nokia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CONCORDIA and Nokia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONCORDIA FINL GROUP and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia and CONCORDIA FINL 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 CONCORDIA FINL GROUP are associated (or correlated) with Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of CONCORDIA FINL i.e., CONCORDIA FINL and Nokia go up and down completely randomly.
Pair Corralation between CONCORDIA FINL and Nokia
Assuming the 90 days horizon CONCORDIA FINL is expected to generate 2.17 times less return on investment than Nokia. But when comparing it to its historical volatility, CONCORDIA FINL GROUP is 1.39 times less risky than Nokia. It trades about 0.1 of its potential returns per unit of risk. Nokia is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 431.00 in Nokia on November 2, 2024 and sell it today you would earn a total of 29.00 from holding Nokia or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CONCORDIA FINL GROUP vs. Nokia
Performance |
| Timeline |
| CONCORDIA FINL GROUP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Nokia |
CONCORDIA FINL and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONCORDIA FINL and Nokia
The main advantage of trading using opposite CONCORDIA FINL and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONCORDIA FINL position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| CONCORDIA FINL vs. Guangdong Investment Limited | CONCORDIA FINL vs. VIVA WINE GROUP | CONCORDIA FINL vs. VIRGIN WINES UK | CONCORDIA FINL vs. NH HOTEL GROUP |
| Nokia vs. EMBARK EDUCATION LTD | Nokia vs. New Residential Investment | Nokia vs. DEVRY EDUCATION GRP | Nokia vs. Strategic Education |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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