Correlation Between Fiskars Oyj and TYSON FOODS

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

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

Diversification Opportunities for Fiskars Oyj and TYSON FOODS

-0.26

Correlation Coefficient

Fiskars Oyj  TYSON FOODS

Very good diversification

The 3 months correlation between Fiskars and TYSON is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fiskars Oyj Abp and TYSON FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TYSON FOODS A and Fiskars 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 Fiskars Oyj Abp are associated (or correlated) with TYSON FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TYSON FOODS A has no effect on the direction of Fiskars Oyj i.e., Fiskars Oyj and TYSON FOODS go up and down completely randomly.

Pair Corralation between Fiskars Oyj and TYSON FOODS

Assuming the 90 days horizon Fiskars Oyj Abp is expected to under-perform the TYSON FOODS. But the stock apears to be less risky and, when comparing its historical volatility, Fiskars Oyj Abp is 1.11 times less risky than TYSON FOODS. The stock trades about -0.03 of its potential returns per unit of risk. The TYSON FOODS A is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  5,252  in TYSON FOODS A on October 23, 2024 and sell it today you would earn a total of  126.00  from holding TYSON FOODS A or generate 2.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Fiskars Oyj Abp  vs.  TYSON FOODS A

Fiskars Oyj Abp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fiskars Oyj Abp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Fiskars Oyj is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TYSON FOODS A

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TYSON FOODS A are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, TYSON FOODS is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fiskars Oyj and TYSON FOODS

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

The idea behind Fiskars Oyj Abp and TYSON FOODS 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.

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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.