Correlation Between Atria Oyj and Best Buy
Can any of the company-specific risk be diversified away by investing in both Atria Oyj and Best Buy 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 Atria Oyj and Best Buy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atria Oyj A and Best Buy Co, you can compare the effects of market volatilities on Atria Oyj and Best Buy 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 Atria Oyj with a short position of Best Buy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atria Oyj and Best Buy.
Diversification Opportunities for Atria Oyj and Best Buy
Excellent diversification
The 3 months correlation between Atria and Best is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Atria Oyj A and Best Buy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and Atria 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 Atria Oyj A are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of Atria Oyj i.e., Atria Oyj and Best Buy go up and down completely randomly.
Pair Corralation between Atria Oyj and Best Buy
Assuming the 90 days trading horizon Atria Oyj A is expected to generate 0.95 times more return on investment than Best Buy. However, Atria Oyj A is 1.06 times less risky than Best Buy. It trades about 0.22 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.08 per unit of risk. If you would invest 952.00 in Atria Oyj A on January 20, 2024 and sell it today you would earn a total of 68.00 from holding Atria Oyj A or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atria Oyj A vs. Best Buy Co
Performance |
| Timeline |
| Atria Oyj A |
| Best Buy |
Atria Oyj and Best Buy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atria Oyj and Best Buy
The main advantage of trading using opposite Atria Oyj and Best Buy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atria Oyj position performs unexpectedly, Best Buy 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 Best Buy will offset losses from the drop in Best Buy's long position.| Atria Oyj vs. Tokmanni Group Oyj | Atria Oyj vs. Kemira Oyj | Atria Oyj vs. Telia Company AB | Atria Oyj vs. Outokumpu Oyj |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |