Correlation Between Fortum Oyj and Robit Oyj

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

By analyzing existing cross correlation between Fortum Oyj and Robit Oyj, you can compare the effects of market volatilities on Fortum Oyj and Robit Oyj 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 Robit Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortum Oyj and Robit Oyj.

Diversification Opportunities for Fortum Oyj and Robit Oyj

-0.72

Correlation Coefficient

Fortum Oyj  Robit Oyj

Pay attention - limited upside

The 3 months correlation between Fortum and Robit is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fortum Oyj and Robit Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robit Oyj 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 are associated (or correlated) with Robit Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robit Oyj has no effect on the direction of Fortum Oyj i.e., Fortum Oyj and Robit Oyj go up and down completely randomly.

Pair Corralation between Fortum Oyj and Robit Oyj

Assuming the 90 days trading horizon Fortum Oyj is expected to generate 0.63 times more return on investment than Robit Oyj. However, Fortum Oyj is 1.6 times less risky than Robit Oyj. It trades about 0.14 of its potential returns per unit of risk. Robit Oyj is currently generating about -0.1 per unit of risk. If you would invest  1,436  in Fortum Oyj on May 4, 2025 and sell it today you would earn a total of  164.00  from holding Fortum Oyj or generate 11.42% return on investment over 90 days.

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

Fortum Oyj  vs.  Robit Oyj

Fortum Oyj

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fortum Oyj are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Fortum Oyj may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Robit Oyj

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robit Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Fortum Oyj and Robit Oyj

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

The idea behind Fortum Oyj and Robit 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.