Correlation Between Kamux Suomi and Kempower Oyj
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By analyzing existing cross correlation between Kamux Suomi Oy and Kempower Oyj, you can compare the effects of market volatilities on Kamux Suomi and Kempower 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 Kamux Suomi with a short position of Kempower Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kamux Suomi and Kempower Oyj.
Diversification Opportunities for Kamux Suomi and Kempower Oyj
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kamux and Kempower is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kamux Suomi Oy and Kempower Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kempower Oyj and Kamux Suomi 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 Kamux Suomi Oy are associated (or correlated) with Kempower Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kempower Oyj has no effect on the direction of Kamux Suomi i.e., Kamux Suomi and Kempower Oyj go up and down completely randomly.
Pair Corralation between Kamux Suomi and Kempower Oyj
Assuming the 90 days trading horizon Kamux Suomi Oy is expected to generate 0.64 times more return on investment than Kempower Oyj. However, Kamux Suomi Oy is 1.56 times less risky than Kempower Oyj. It trades about -0.1 of its potential returns per unit of risk. Kempower Oyj is currently generating about -0.11 per unit of risk. If you would invest 383.00 in Kamux Suomi Oy on September 17, 2024 and sell it today you would lose (41.00) from holding Kamux Suomi Oy or give up 10.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kamux Suomi Oy vs. Kempower Oyj
Performance |
Timeline |
Kamux Suomi Oy |
Kempower Oyj |
Kamux Suomi and Kempower Oyj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kamux Suomi and Kempower Oyj
The main advantage of trading using opposite Kamux Suomi and Kempower Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kamux Suomi position performs unexpectedly, Kempower 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 Kempower Oyj will offset losses from the drop in Kempower Oyj's long position.Kamux Suomi vs. Harvia Oyj | Kamux Suomi vs. Qt Group Oyj | Kamux Suomi vs. Tokmanni Group Oyj | Kamux Suomi vs. Sampo Oyj A |
Kempower Oyj vs. Harvia Oyj | Kempower Oyj vs. Tecnotree Oyj | Kempower Oyj vs. Qt Group Oyj | Kempower Oyj vs. Kamux Suomi Oy |
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 Stocks Directory module to find actively traded stocks across global markets.
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