Correlation Between SSH Communications and Remedy Entertainment

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

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

Diversification Opportunities for SSH Communications and Remedy Entertainment

-0.01

Correlation Coefficient

SSH Communications  Remedy Entertainment

Good diversification

The 3 months correlation between SSH and Remedy is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding SSH Communications Security and Remedy Entertainment Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remedy Entertainment Oyj and SSH Communications 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 SSH Communications Security are associated (or correlated) with Remedy Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remedy Entertainment Oyj has no effect on the direction of SSH Communications i.e., SSH Communications and Remedy Entertainment go up and down completely randomly.

Pair Corralation between SSH Communications and Remedy Entertainment

Assuming the 90 days trading horizon SSH Communications Security is expected to generate 1.02 times more return on investment than Remedy Entertainment. However, SSH Communications is 1.02 times more volatile than Remedy Entertainment Oyj. It trades about 0.05 of its potential returns per unit of risk. Remedy Entertainment Oyj is currently generating about 0.02 per unit of risk. If you would invest  104.00  in SSH Communications Security on December 30, 2024 and sell it today you would earn a total of  6.00  from holding SSH Communications Security or generate 5.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SSH Communications Security  vs.  Remedy Entertainment Oyj

SSH Communications

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SSH Communications Security are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical indicators, SSH Communications may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Remedy Entertainment Oyj

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Remedy Entertainment Oyj are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, Remedy Entertainment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SSH Communications and Remedy Entertainment

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

The idea behind SSH Communications Security and Remedy Entertainment 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.