Correlation Between Orion Oyj and Atria Oyj

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

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

Diversification Opportunities for Orion Oyj and Atria Oyj

0.45

Correlation Coefficient

Orion Oyj  Atria Oyj

Very weak diversification

The 3 months correlation between Orion and Atria is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Orion Oyj A and Atria Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atria Oyj A and Orion 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 Orion Oyj A are associated (or correlated) with Atria Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atria Oyj A has no effect on the direction of Orion Oyj i.e., Orion Oyj and Atria Oyj go up and down completely randomly.

Pair Corralation between Orion Oyj and Atria Oyj

If you would invest  880.00  in Atria Oyj A on January 28, 2024 and sell it today you would earn a total of  76.00  from holding Atria Oyj A or generate 8.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Orion Oyj A  vs.  Atria Oyj A

Orion Oyj A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orion Oyj A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Atria Oyj A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atria Oyj A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Atria Oyj is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Orion Oyj and Atria Oyj

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

The idea behind Orion Oyj A and Atria Oyj A 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.

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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.