Correlation Between Apetit Oyj and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Apetit Oyj and NYSE Composite 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 Apetit Oyj and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apetit Oyj and NYSE Composite, you can compare the effects of market volatilities on Apetit Oyj and NYSE Composite 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 Apetit Oyj with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apetit Oyj and NYSE Composite.
Diversification Opportunities for Apetit Oyj and NYSE Composite
-0.4 | Correlation Coefficient |
Very good diversification
The 12 months correlation between Apetit and NYSE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Apetit Oyj and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Apetit 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 Apetit Oyj are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Apetit Oyj i.e., Apetit Oyj and NYSE Composite go up and down completely randomly.
Pair Corralation between Apetit Oyj and NYSE Composite
Assuming the 90 days trading horizon Apetit Oyj is expected to under-perform the NYSE Composite. In addition to that, Apetit Oyj is 1.17 times more volatile than NYSE Composite. It trades about -0.05 of its total potential returns per unit of risk. NYSE Composite is currently generating about 0.13 per unit of volatility. If you would invest 1,783,107 in NYSE Composite on February 28, 2024 and sell it today you would earn a total of 27,953 from holding NYSE Composite or generate 1.57% return on investment over 90 days.
Time Period | 12 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Apetit Oyj vs. NYSE Composite
Performance |
Timeline |
Apetit Oyj and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Apetit Oyj
Pair trading matchups for Apetit Oyj
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Apetit Oyj and NYSE Composite
The main advantage of trading using opposite Apetit Oyj and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apetit Oyj position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Apetit Oyj vs. HKScan Oyj A | Apetit Oyj vs. Atria Oyj A | Apetit Oyj vs. Raisio Oyj Vaihto osake | Apetit Oyj vs. Lassila Tikanoja Oyj |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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