Correlation Between Sampo Oyj and Raisio Oyj
Can any of the company-specific risk be diversified away by investing in both Sampo Oyj and Raisio 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 Sampo Oyj and Raisio Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampo Oyj A and Raisio Oyj Vaihto osake, you can compare the effects of market volatilities on Sampo Oyj and Raisio 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 Sampo Oyj with a short position of Raisio Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and Raisio Oyj.
Diversification Opportunities for Sampo Oyj and Raisio Oyj
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sampo and Raisio is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj A and Raisio Oyj Vaihto osake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raisio Oyj Vaihto and Sampo 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 Sampo Oyj A are associated (or correlated) with Raisio Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raisio Oyj Vaihto has no effect on the direction of Sampo Oyj i.e., Sampo Oyj and Raisio Oyj go up and down completely randomly.
Pair Corralation between Sampo Oyj and Raisio Oyj
Assuming the 90 days trading horizon Sampo Oyj A is expected to generate 0.79 times more return on investment than Raisio Oyj. However, Sampo Oyj A is 1.26 times less risky than Raisio Oyj. It trades about 0.01 of its potential returns per unit of risk. Raisio Oyj Vaihto osake is currently generating about -0.01 per unit of risk. If you would invest 3,767 in Sampo Oyj A on February 3, 2024 and sell it today you would earn a total of 7.00 from holding Sampo Oyj A or generate 0.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sampo Oyj A vs. Raisio Oyj Vaihto osake
Performance |
Timeline |
Sampo Oyj A |
Raisio Oyj Vaihto |
Sampo Oyj and Raisio Oyj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sampo Oyj and Raisio Oyj
The main advantage of trading using opposite Sampo Oyj and Raisio Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj position performs unexpectedly, Raisio 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 Raisio Oyj will offset losses from the drop in Raisio Oyj's long position.Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. UPM Kymmene Oyj | Sampo Oyj vs. Neste Oil Oyj |
Raisio Oyj vs. Tokmanni Group Oyj | Raisio Oyj vs. Valmet Oyj | Raisio Oyj vs. Kesko Oyj | Raisio Oyj vs. Huhtamaki 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |