Correlation Between Exel Composites and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Exel Composites and Sampo 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 Exel Composites and Sampo Oyj 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 Sampo Oyj A, you can compare the effects of market volatilities on Exel Composites and Sampo 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 Exel Composites with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exel Composites and Sampo Oyj.
Diversification Opportunities for Exel Composites and Sampo Oyj
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Exel and Sampo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Exel Composites Oyj and Sampo Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj A 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj A has no effect on the direction of Exel Composites i.e., Exel Composites and Sampo Oyj go up and down completely randomly.
Pair Corralation between Exel Composites and Sampo Oyj
Assuming the 90 days trading horizon Exel Composites Oyj is expected to generate 2.95 times more return on investment than Sampo Oyj. However, Exel Composites is 2.95 times more volatile than Sampo Oyj A. It trades about 0.21 of its potential returns per unit of risk. Sampo Oyj A is currently generating about 0.19 per unit of risk. If you would invest 28.00 in Exel Composites Oyj on December 30, 2024 and sell it today you would earn a total of 12.00 from holding Exel Composites Oyj or generate 42.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Exel Composites Oyj vs. Sampo Oyj A
Performance |
Timeline |
Exel Composites Oyj |
Sampo Oyj A |
Exel Composites and Sampo Oyj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exel Composites and Sampo Oyj
The main advantage of trading using opposite Exel Composites and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exel Composites position performs unexpectedly, Sampo 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 Sampo Oyj will offset losses from the drop in Sampo Oyj's long position.Exel Composites vs. Detection Technology OY | Exel Composites vs. Finnair Oyj | Exel Composites vs. United Bankers Oyj | Exel Composites vs. Remedy Entertainment Oyj |
Sampo Oyj vs. Nordea Bank Abp | Sampo Oyj vs. Fortum Oyj | Sampo Oyj vs. UPM Kymmene Oyj | Sampo Oyj vs. Neste Oil Oyj |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |