Correlation Between OMX Helsinki and Alma Media
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By analyzing existing cross correlation between OMX Helsinki 25 and Alma Media Oyj, you can compare the effects of market volatilities on OMX Helsinki and Alma Media 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 OMX Helsinki with a short position of Alma Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Alma Media.
Diversification Opportunities for OMX Helsinki and Alma Media
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Alma is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Alma Media Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alma Media Oyj and OMX Helsinki 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 OMX Helsinki 25 are associated (or correlated) with Alma Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alma Media Oyj has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Alma Media go up and down completely randomly.
Pair Corralation between OMX Helsinki and Alma Media
Assuming the 90 days trading horizon OMX Helsinki is expected to generate 2.75 times less return on investment than Alma Media. But when comparing it to its historical volatility, OMX Helsinki 25 is 1.93 times less risky than Alma Media. It trades about 0.07 of its potential returns per unit of risk. Alma Media Oyj is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Alma Media Oyj on February 5, 2024 and sell it today you would earn a total of 25.00 from holding Alma Media Oyj or generate 2.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Helsinki 25 vs. Alma Media Oyj
Performance |
Timeline |
OMX Helsinki and Alma Media Volatility Contrast
Predicted Return Density |
Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Alma Media Oyj
Pair trading matchups for Alma Media
Pair Trading with OMX Helsinki and Alma Media
The main advantage of trading using opposite OMX Helsinki and Alma Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Alma Media 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 Alma Media will offset losses from the drop in Alma Media's long position.OMX Helsinki vs. SSH Communications Security | OMX Helsinki vs. Aiforia Technologies Oyj | OMX Helsinki vs. Remedy Entertainment Oyj | OMX Helsinki vs. Detection Technology OY |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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