Correlation Between Spinnova and Kamux Suomi
Can any of the company-specific risk be diversified away by investing in both Spinnova and Kamux Suomi 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 Spinnova and Kamux Suomi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnova Oy and Kamux Suomi Oy, you can compare the effects of market volatilities on Spinnova and Kamux Suomi 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 Spinnova with a short position of Kamux Suomi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnova and Kamux Suomi.
Diversification Opportunities for Spinnova and Kamux Suomi
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spinnova and Kamux is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Spinnova Oy and Kamux Suomi Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamux Suomi Oy and Spinnova 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 Spinnova Oy are associated (or correlated) with Kamux Suomi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamux Suomi Oy has no effect on the direction of Spinnova i.e., Spinnova and Kamux Suomi go up and down completely randomly.
Pair Corralation between Spinnova and Kamux Suomi
Assuming the 90 days trading horizon Spinnova Oy is expected to under-perform the Kamux Suomi. But the stock apears to be less risky and, when comparing its historical volatility, Spinnova Oy is 1.19 times less risky than Kamux Suomi. The stock trades about -0.19 of its potential returns per unit of risk. The Kamux Suomi Oy is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Kamux Suomi Oy on January 30, 2024 and sell it today you would lose (12.00) from holding Kamux Suomi Oy or give up 2.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Spinnova Oy vs. Kamux Suomi Oy
Performance |
Timeline |
Spinnova Oy |
Kamux Suomi Oy |
Spinnova and Kamux Suomi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Spinnova and Kamux Suomi
The main advantage of trading using opposite Spinnova and Kamux Suomi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnova position performs unexpectedly, Kamux Suomi 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 Kamux Suomi will offset losses from the drop in Kamux Suomi's long position.Spinnova vs. Qt Group Oyj | Spinnova vs. Kempower Oyj | Spinnova vs. Harvia Oyj | Spinnova vs. Nordea Bank Abp |
Kamux Suomi vs. Harvia Oyj | Kamux Suomi vs. Qt Group Oyj | Kamux Suomi vs. Tokmanni Group Oyj | Kamux Suomi vs. Sampo Oyj A |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Stocks Directory Find actively traded stocks across global markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Commodity Directory Find actively traded commodities issued by global exchanges |