Correlation Between Finnair Oyj and Systemair
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Systemair 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 Finnair Oyj and Systemair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Systemair AB, you can compare the effects of market volatilities on Finnair Oyj and Systemair 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 Finnair Oyj with a short position of Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Systemair.
Diversification Opportunities for Finnair Oyj and Systemair
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and Systemair is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair AB and Finnair 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 Finnair Oyj are associated (or correlated) with Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Systemair go up and down completely randomly.
Pair Corralation between Finnair Oyj and Systemair
Assuming the 90 days trading horizon Finnair Oyj is expected to under-perform the Systemair. In addition to that, Finnair Oyj is 2.1 times more volatile than Systemair AB. It trades about -0.09 of its total potential returns per unit of risk. Systemair AB is currently generating about 0.06 per unit of volatility. If you would invest 6,609 in Systemair AB on August 25, 2024 and sell it today you would earn a total of 2,471 from holding Systemair AB or generate 37.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.98% |
| Values | Daily Returns |
Finnair Oyj vs. Systemair AB
Performance |
| Timeline |
| Finnair Oyj |
| Systemair AB |
Finnair Oyj and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Systemair
The main advantage of trading using opposite Finnair Oyj and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Finnair Oyj vs. Quadrise Plc | Finnair Oyj vs. Intuitive Investments Group | Finnair Oyj vs. European Metals Holdings | Finnair Oyj vs. Athelney Trust plc |
| Systemair vs. X FAB Silicon Foundries | Systemair vs. Darden Restaurants | Systemair vs. Summit Materials Cl | Systemair vs. Take Two Interactive Software |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |