Correlation Between OMX Helsinki and Detection Technology
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By analyzing existing cross correlation between OMX Helsinki 25 and Detection Technology OY, you can compare the effects of market volatilities on OMX Helsinki and Detection Technology 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 OMX Helsinki with a short position of Detection Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Detection Technology.
Diversification Opportunities for OMX Helsinki and Detection Technology
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Detection is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Detection Technology OY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detection Technology and OMX Helsinki 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 OMX Helsinki 25 are associated (or correlated) with Detection Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detection Technology has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Detection Technology go up and down completely randomly.
Pair Corralation between OMX Helsinki and Detection Technology
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to generate 0.4 times more return on investment than Detection Technology. However, OMX Helsinki 25 is 2.51 times less risky than Detection Technology. It trades about 0.01 of its potential returns per unit of risk. Detection Technology OY is currently generating about -0.02 per unit of risk. If you would invest 441,325 in OMX Helsinki 25 on January 24, 2024 and sell it today you would earn a total of 2,557 from holding OMX Helsinki 25 or generate 0.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.52% |
Values | Daily Returns |
OMX Helsinki 25 vs. Detection Technology OY
Performance |
Timeline |
OMX Helsinki and Detection Technology Volatility Contrast
Predicted Return Density |
Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Detection Technology OY
Pair trading matchups for Detection Technology
Pair Trading with OMX Helsinki and Detection Technology
The main advantage of trading using opposite OMX Helsinki and Detection Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Detection Technology 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 Detection Technology will offset losses from the drop in Detection Technology's long position.OMX Helsinki vs. PunaMusta Media Oyj | OMX Helsinki vs. Trainers House Oyj | OMX Helsinki vs. Remedy Entertainment Oyj | OMX Helsinki vs. Alandsbanken Abp A |
Detection Technology vs. Harvia Oyj | Detection Technology vs. Kamux Suomi Oy | Detection Technology vs. Tokmanni Group Oyj | Detection Technology vs. Remedy Entertainment 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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