Correlation Between Cresud SACIF and Verkkokauppa Oyj
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Verkkokauppa 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 Cresud SACIF and Verkkokauppa Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SACIF y and Verkkokauppa Oyj, you can compare the effects of market volatilities on Cresud SACIF and Verkkokauppa 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 Cresud SACIF with a short position of Verkkokauppa Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Verkkokauppa Oyj.
Diversification Opportunities for Cresud SACIF and Verkkokauppa Oyj
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cresud and Verkkokauppa is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Verkkokauppa Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verkkokauppa Oyj and Cresud SACIF 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 Cresud SACIF y are associated (or correlated) with Verkkokauppa Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verkkokauppa Oyj has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Verkkokauppa Oyj go up and down completely randomly.
Pair Corralation between Cresud SACIF and Verkkokauppa Oyj
Assuming the 90 days horizon Cresud SACIF is expected to generate 3.42 times less return on investment than Verkkokauppa Oyj. But when comparing it to its historical volatility, Cresud SACIF y is 1.06 times less risky than Verkkokauppa Oyj. It trades about 0.07 of its potential returns per unit of risk. Verkkokauppa Oyj is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Verkkokauppa Oyj on October 5, 2024 and sell it today you would earn a total of 16.00 from holding Verkkokauppa Oyj or generate 11.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 80.95% |
Values | Daily Returns |
Cresud SACIF y vs. Verkkokauppa Oyj
Performance |
Timeline |
Cresud SACIF y |
Verkkokauppa Oyj |
Cresud SACIF and Verkkokauppa Oyj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cresud SACIF and Verkkokauppa Oyj
The main advantage of trading using opposite Cresud SACIF and Verkkokauppa Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Verkkokauppa 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 Verkkokauppa Oyj will offset losses from the drop in Verkkokauppa Oyj's long position.Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
Verkkokauppa Oyj vs. Tokmanni Group Oyj | Verkkokauppa Oyj vs. Harvia Oyj | Verkkokauppa Oyj vs. Sampo Oyj A | Verkkokauppa 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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