Correlation Between Fortum Oyj and UGE International
Can any of the company-specific risk be diversified away by investing in both Fortum Oyj and UGE International 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 Fortum Oyj and UGE International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortum Oyj ADR and UGE International, you can compare the effects of market volatilities on Fortum Oyj and UGE International 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 Fortum Oyj with a short position of UGE International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortum Oyj and UGE International.
Diversification Opportunities for Fortum Oyj and UGE International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortum and UGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fortum Oyj ADR and UGE International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UGE International and Fortum 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 Fortum Oyj ADR are associated (or correlated) with UGE International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UGE International has no effect on the direction of Fortum Oyj i.e., Fortum Oyj and UGE International go up and down completely randomly.
Pair Corralation between Fortum Oyj and UGE International
If you would invest 277.00 in Fortum Oyj ADR on December 2, 2024 and sell it today you would earn a total of 27.00 from holding Fortum Oyj ADR or generate 9.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Fortum Oyj ADR vs. UGE International
Performance |
Timeline |
Fortum Oyj ADR |
UGE International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Fortum Oyj and UGE International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fortum Oyj and UGE International
The main advantage of trading using opposite Fortum Oyj and UGE International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortum Oyj position performs unexpectedly, UGE International 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 UGE International will offset losses from the drop in UGE International's long position.Fortum Oyj vs. Constellation Energy Corp | Fortum Oyj vs. Astra Energy | Fortum Oyj vs. Powertap Hydrogen Capital | Fortum Oyj vs. Brenmiller Energy Ltd |
UGE International vs. Fortum Oyj ADR | UGE International vs. Astra Energy | UGE International vs. Powertap Hydrogen Capital | UGE International vs. Brenmiller Energy Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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