Correlation Between Martela Oyj and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Martela Oyj and NYSE Composite 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 Martela Oyj and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martela Oyj A and NYSE Composite, you can compare the effects of market volatilities on Martela Oyj and NYSE Composite 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 Martela Oyj with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martela Oyj and NYSE Composite.
Diversification Opportunities for Martela Oyj and NYSE Composite
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martela and NYSE is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Martela Oyj A and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Martela 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 Martela Oyj A are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Martela Oyj i.e., Martela Oyj and NYSE Composite go up and down completely randomly.
Pair Corralation between Martela Oyj and NYSE Composite
Assuming the 90 days trading horizon Martela Oyj A is expected to generate 1.84 times more return on investment than NYSE Composite. However, Martela Oyj is 1.84 times more volatile than NYSE Composite. It trades about 0.09 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.19 per unit of risk. If you would invest 130.00 in Martela Oyj A on February 2, 2024 and sell it today you would earn a total of 3.00 from holding Martela Oyj A or generate 2.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Martela Oyj A vs. NYSE Composite
Performance |
Timeline |
Martela Oyj and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Martela Oyj A
Pair trading matchups for Martela Oyj
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Martela Oyj and NYSE Composite
The main advantage of trading using opposite Martela Oyj and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martela Oyj position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Martela Oyj vs. Fortum Oyj | Martela Oyj vs. Nordea Bank Abp | Martela Oyj vs. Sampo Oyj A | Martela Oyj vs. Neste Oil Oyj |
NYSE Composite vs. NI Holdings | NYSE Composite vs. Mattel Inc | NYSE Composite vs. Parker Hannifin | NYSE Composite vs. Artisan Partners Asset |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |