Correlation Between Fortum Oyj and Joy Global
Can any of the company-specific risk be diversified away by investing in both Fortum Oyj and Joy Global 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 Joy Global 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 Joy Global, you can compare the effects of market volatilities on Fortum Oyj and Joy Global 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 Joy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortum Oyj and Joy Global.
Diversification Opportunities for Fortum Oyj and Joy Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortum and Joy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fortum Oyj ADR and Joy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joy Global 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 Joy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joy Global has no effect on the direction of Fortum Oyj i.e., Fortum Oyj and Joy Global go up and down completely randomly.
Pair Corralation between Fortum Oyj and Joy Global
If you would invest 245.00 in Fortum Oyj ADR on January 19, 2024 and sell it today you would earn a total of 10.00 from holding Fortum Oyj ADR or generate 4.08% 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. Joy Global
Performance |
Timeline |
Fortum Oyj ADR |
Joy Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortum Oyj and Joy Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fortum Oyj and Joy Global
The main advantage of trading using opposite Fortum Oyj and Joy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortum Oyj position performs unexpectedly, Joy Global 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 Joy Global will offset losses from the drop in Joy Global's long position.Fortum Oyj vs. Brenmiller Energy Ltd | Fortum Oyj vs. Mass Megawat Wind | Fortum Oyj vs. Vision Energy Corp |
Joy Global vs. Calliditas Therapeutics | Joy Global vs. Teleflex Incorporated | Joy Global vs. Weyco Group | Joy Global vs. Transphorm Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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