Correlation Between Tulikivi Oyj and Exel Composites
Can any of the company-specific risk be diversified away by investing in both Tulikivi Oyj and Exel Composites 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 Tulikivi Oyj and Exel Composites into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tulikivi Oyj A and Exel Composites Oyj, you can compare the effects of market volatilities on Tulikivi Oyj and Exel Composites 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 Tulikivi Oyj with a short position of Exel Composites. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tulikivi Oyj and Exel Composites.
Diversification Opportunities for Tulikivi Oyj and Exel Composites
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tulikivi and Exel is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tulikivi Oyj A and Exel Composites Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exel Composites Oyj and Tulikivi Oyj 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 Tulikivi Oyj A are associated (or correlated) with Exel Composites. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exel Composites Oyj has no effect on the direction of Tulikivi Oyj i.e., Tulikivi Oyj and Exel Composites go up and down completely randomly.
Pair Corralation between Tulikivi Oyj and Exel Composites
Assuming the 90 days trading horizon Tulikivi Oyj A is expected to generate 0.49 times more return on investment than Exel Composites. However, Tulikivi Oyj A is 2.06 times less risky than Exel Composites. It trades about 0.3 of its potential returns per unit of risk. Exel Composites Oyj is currently generating about -0.25 per unit of risk. If you would invest 41.00 in Tulikivi Oyj A on January 31, 2024 and sell it today you would earn a total of 6.00 from holding Tulikivi Oyj A or generate 14.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Tulikivi Oyj A vs. Exel Composites Oyj
Performance |
Timeline |
Tulikivi Oyj A |
Exel Composites Oyj |
Tulikivi Oyj and Exel Composites Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tulikivi Oyj and Exel Composites
The main advantage of trading using opposite Tulikivi Oyj and Exel Composites positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tulikivi Oyj position performs unexpectedly, Exel Composites 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 Exel Composites will offset losses from the drop in Exel Composites' long position.Tulikivi Oyj vs. Fortum Oyj | Tulikivi Oyj vs. Nordea Bank Abp | Tulikivi Oyj vs. Sampo Oyj A | Tulikivi Oyj vs. Neste Oil Oyj |
Exel Composites vs. Fortum Oyj | Exel Composites vs. Nordea Bank Abp | Exel Composites vs. Sampo Oyj A | Exel Composites vs. Neste Oil 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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