Correlation Between Exel Composites and F SECURE

Can any of the company-specific risk be diversified away by investing in both Exel Composites and F SECURE 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 Exel Composites and F SECURE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exel Composites Oyj and F SECURE OYJ, you can compare the effects of market volatilities on Exel Composites and F SECURE 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 Exel Composites with a short position of F SECURE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exel Composites and F SECURE.

Diversification Opportunities for Exel Composites and F SECURE

0.0

Correlation Coefficient

Exel Composites  F SECURE

Pay attention - limited upside

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

Pair Corralation between Exel Composites and F SECURE

If you would invest  28.00  in Exel Composites Oyj on December 24, 2024 and sell it today you would earn a total of  11.00  from holding Exel Composites Oyj or generate 39.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Exel Composites Oyj  vs.  F SECURE OYJ

Exel Composites Oyj

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Exel Composites Oyj are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, Exel Composites demonstrated solid returns over the last few months and may actually be approaching a breakup point.

F SECURE OYJ

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Exel Composites and F SECURE

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

The idea behind Exel Composites Oyj and F SECURE 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.