Correlation Between Computer Modelling and Teleste Oyj

Can any of the company-specific risk be diversified away by investing in both Computer Modelling and Teleste 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 Computer Modelling and Teleste Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Computer Modelling Group and Teleste Oyj, you can compare the effects of market volatilities on Computer Modelling and Teleste 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 Computer Modelling with a short position of Teleste Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Modelling and Teleste Oyj.

Diversification Opportunities for Computer Modelling and Teleste Oyj

0.15

Correlation Coefficient

Computer Modelling  Teleste Oyj

Average diversification

The 3 months correlation between Computer and Teleste is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Computer Modelling Group and Teleste Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleste Oyj and Computer Modelling 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 Computer Modelling Group are associated (or correlated) with Teleste Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleste Oyj has no effect on the direction of Computer Modelling i.e., Computer Modelling and Teleste Oyj go up and down completely randomly.

Pair Corralation between Computer Modelling and Teleste Oyj

Assuming the 90 days trading horizon Computer Modelling is expected to generate 4.67 times less return on investment than Teleste Oyj. In addition to that, Computer Modelling is 1.58 times more volatile than Teleste Oyj. It trades about 0.02 of its total potential returns per unit of risk. Teleste Oyj is currently generating about 0.15 per unit of volatility. If you would invest  275.00  in Teleste Oyj on April 21, 2025 and sell it today you would earn a total of  49.00  from holding Teleste Oyj or generate 17.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Computer Modelling Group  vs.  Teleste Oyj

Computer Modelling

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Computer Modelling Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Computer Modelling is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Teleste Oyj

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Teleste Oyj are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Teleste Oyj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Computer Modelling and Teleste Oyj

The main advantage of trading using opposite Computer Modelling and Teleste Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Modelling position performs unexpectedly, Teleste 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 Teleste Oyj will offset losses from the drop in Teleste Oyj's long position.

The idea behind Computer Modelling Group and Teleste Oyj pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.