Correlation Between GEVORKYAN and Nokia Oyj

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

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

Diversification Opportunities for GEVORKYAN and Nokia Oyj

0.32

Correlation Coefficient

GEVORKYAN  Nokia Oyj

Weak diversification

The 3 months correlation between GEVORKYAN and Nokia is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding GEVORKYAN as and Nokia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia Oyj and GEVORKYAN 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 GEVORKYAN as are associated (or correlated) with Nokia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia Oyj has no effect on the direction of GEVORKYAN i.e., GEVORKYAN and Nokia Oyj go up and down completely randomly.

Pair Corralation between GEVORKYAN and Nokia Oyj

Assuming the 90 days trading horizon GEVORKYAN is expected to generate 1.05 times less return on investment than Nokia Oyj. But when comparing it to its historical volatility, GEVORKYAN as is 1.48 times less risky than Nokia Oyj. It trades about 0.08 of its potential returns per unit of risk. Nokia Oyj is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,661  in Nokia Oyj on September 1, 2024 and sell it today you would earn a total of  503.00  from holding Nokia Oyj or generate 5.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

GEVORKYAN as  vs.  Nokia Oyj

GEVORKYAN as

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in GEVORKYAN as are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, GEVORKYAN is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Nokia Oyj

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nokia Oyj are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Nokia Oyj is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with GEVORKYAN and Nokia Oyj

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

The idea behind GEVORKYAN as and Nokia 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.