Correlation Between F SECURE and Aspocomp Group

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

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

Diversification Opportunities for F SECURE and Aspocomp Group

0.0

Correlation Coefficient

F SECURE  Aspocomp Group

Pay attention - limited upside

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

Pair Corralation between F SECURE and Aspocomp Group

If you would invest  295.00  in Aspocomp Group Oyj on October 25, 2024 and sell it today you would earn a total of  30.00  from holding Aspocomp Group Oyj or generate 10.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.75%
Values	Daily Returns

F SECURE OYJ  vs.  Aspocomp Group Oyj

F SECURE OYJ

Risk-Adjusted Performance

0 of 100

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.

Aspocomp Group Oyj

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aspocomp Group Oyj are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical indicators, Aspocomp Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with F SECURE and Aspocomp Group

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

The idea behind F SECURE OYJ and Aspocomp Group 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.