Correlation Between Metso Oyj and Rush Factory

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

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

Diversification Opportunities for Metso Oyj and Rush Factory

0.0

Correlation Coefficient

Metso Oyj  Rush Factory

Pay attention - limited upside

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

Pair Corralation between Metso Oyj and Rush Factory

If you would invest  898.00  in Metso Oyj on December 30, 2024 and sell it today you would earn a total of  89.00  from holding Metso Oyj or generate 9.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Metso Oyj  vs.  Rush Factory Oyj

Metso Oyj

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Metso Oyj are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical indicators, Metso Oyj may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Rush Factory Oyj

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Metso Oyj and Rush Factory

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

The idea behind Metso Oyj and Rush Factory 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.