Correlation Between Alma Media and Aiforia Technologies
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alma Media Oyj and Aiforia Technologies Oyj, you can compare the effects of market volatilities on Alma Media and Aiforia Technologies 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 Alma Media with a short position of Aiforia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alma Media and Aiforia Technologies.
Diversification Opportunities for Alma Media and Aiforia Technologies
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alma and Aiforia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alma Media Oyj and Aiforia Technologies Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aiforia Technologies Oyj and Alma Media 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 Alma Media Oyj are associated (or correlated) with Aiforia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aiforia Technologies Oyj has no effect on the direction of Alma Media i.e., Alma Media and Aiforia Technologies go up and down completely randomly.
Pair Corralation between Alma Media and Aiforia Technologies
Assuming the 90 days trading horizon Alma Media is expected to generate 1.19 times less return on investment than Aiforia Technologies. But when comparing it to its historical volatility, Alma Media Oyj is 2.07 times less risky than Aiforia Technologies. It trades about 0.14 of its potential returns per unit of risk. Aiforia Technologies Oyj is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 358.00 in Aiforia Technologies Oyj on February 19, 2024 and sell it today you would earn a total of 39.00 from holding Aiforia Technologies Oyj or generate 10.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Alma Media Oyj vs. Aiforia Technologies Oyj
Performance |
Timeline |
Alma Media Oyj |
Aiforia Technologies Oyj |
Alma Media and Aiforia Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alma Media and Aiforia Technologies
The main advantage of trading using opposite Alma Media and Aiforia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alma Media position performs unexpectedly, Aiforia Technologies 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 Aiforia Technologies will offset losses from the drop in Aiforia Technologies' long position.Alma Media vs. Tokmanni Group Oyj | Alma Media vs. Kemira Oyj | Alma Media vs. Elisa Oyj | Alma Media vs. Valmet Oyj |
Aiforia Technologies vs. Reka Industrial Oyj | Aiforia Technologies vs. QPR Software Oyj | Aiforia Technologies vs. Nordea Bank Abp | Aiforia Technologies vs. Alma Media 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |