Correlation Between CapMan Oyj and Rush Factory

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

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

Diversification Opportunities for CapMan Oyj and Rush Factory

0.0

Correlation Coefficient

CapMan Oyj  Rush Factory

Pay attention - limited upside

The 3 months correlation between CapMan and Rush is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CapMan Oyj B and Rush Factory Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Factory Oyj and CapMan 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 CapMan Oyj B are associated (or correlated) with Rush Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Factory Oyj has no effect on the direction of CapMan Oyj i.e., CapMan Oyj and Rush Factory go up and down completely randomly.

Pair Corralation between CapMan Oyj and Rush Factory

If you would invest  165.00  in CapMan Oyj B on December 30, 2024 and sell it today you would earn a total of  21.00  from holding CapMan Oyj B or generate 12.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

CapMan Oyj B  vs.  Rush Factory Oyj

CapMan Oyj B

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CapMan Oyj B are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CapMan Oyj sustained solid returns over the last few months and may actually be approaching a breakup point.

Rush Factory Oyj

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rush Factory Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Rush Factory is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CapMan Oyj and Rush Factory

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

The idea behind CapMan Oyj B and Rush Factory Oyj 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.