Correlation Between Nokia Oyj and OMX Helsinki
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By analyzing existing cross correlation between Nokia Oyj and OMX Helsinki 25, you can compare the effects of market volatilities on Nokia Oyj and OMX Helsinki 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 Oyj with a short position of OMX Helsinki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nokia Oyj and OMX Helsinki.
Diversification Opportunities for Nokia Oyj and OMX Helsinki
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nokia and OMX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nokia Oyj and OMX Helsinki 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Helsinki 25 and Nokia 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 Nokia Oyj are associated (or correlated) with OMX Helsinki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Helsinki 25 has no effect on the direction of Nokia Oyj i.e., Nokia Oyj and OMX Helsinki go up and down completely randomly.
Pair Corralation between Nokia Oyj and OMX Helsinki
Assuming the 90 days trading horizon Nokia Oyj is expected to under-perform the OMX Helsinki. In addition to that, Nokia Oyj is 2.86 times more volatile than OMX Helsinki 25. It trades about -0.17 of its total potential returns per unit of risk. OMX Helsinki 25 is currently generating about 0.14 per unit of volatility. If you would invest 455,470 in OMX Helsinki 25 on May 7, 2025 and sell it today you would earn a total of 26,937 from holding OMX Helsinki 25 or generate 5.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nokia Oyj vs. OMX Helsinki 25
Performance |
Timeline |
Nokia Oyj and OMX Helsinki Volatility Contrast
Predicted Return Density |
Returns |
Nokia Oyj
Pair trading matchups for Nokia Oyj
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Pair Trading with Nokia Oyj and OMX Helsinki
The main advantage of trading using opposite Nokia Oyj and OMX Helsinki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nokia Oyj position performs unexpectedly, OMX Helsinki 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 OMX Helsinki will offset losses from the drop in OMX Helsinki's long position.Nokia Oyj vs. Fortum Oyj | Nokia Oyj vs. Nordea Bank Abp | Nokia Oyj vs. Sampo Oyj A | Nokia Oyj vs. Neste Oil Oyj |
OMX Helsinki vs. Trainers House Oyj | OMX Helsinki vs. Finnair Oyj | OMX Helsinki vs. Nightingale Health Oyj | OMX Helsinki vs. QPR Software 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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