Correlation Between Nokia Corp and Simt Real

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

By analyzing existing cross correlation between Nokia Corp ADR and Simt Real Estate, you can compare the effects of market volatilities on Nokia Corp and Simt Real 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 Nokia Corp with a short position of Simt Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nokia Corp and Simt Real.

Diversification Opportunities for Nokia Corp and Simt Real

-0.35

Correlation Coefficient

Nokia Corp  Simt Real

Very good diversification

The 3 months correlation between Nokia and Simt is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nokia Corp ADR and Simt Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Real Estate and Nokia Corp 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 Nokia Corp ADR are associated (or correlated) with Simt Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Real Estate has no effect on the direction of Nokia Corp i.e., Nokia Corp and Simt Real go up and down completely randomly.

Pair Corralation between Nokia Corp and Simt Real

Considering the 90-day investment horizon Nokia Corp ADR is expected to under-perform the Simt Real. In addition to that, Nokia Corp is 1.66 times more volatile than Simt Real Estate. It trades about -0.21 of its total potential returns per unit of risk. Simt Real Estate is currently generating about -0.01 per unit of volatility. If you would invest  1,600  in Simt Real Estate on May 5, 2025 and sell it today you would lose (17.00) from holding Simt Real Estate or give up 1.06% of portfolio value over 90 days.

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

Nokia Corp ADR  vs.  Simt Real Estate

Nokia Corp ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nokia Corp ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Simt Real Estate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Simt Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Simt Real is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nokia Corp and Simt Real

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

The idea behind Nokia Corp ADR and Simt Real Estate 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.