Correlation Between Finnair Oyj and Creo Medical
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Creo Medical 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 Creo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Creo Medical Group, you can compare the effects of market volatilities on Finnair Oyj and Creo Medical 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 Creo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Creo Medical.
Diversification Opportunities for Finnair Oyj and Creo Medical
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and Creo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group 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 Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Creo Medical go up and down completely randomly.
Pair Corralation between Finnair Oyj and Creo Medical
Assuming the 90 days trading horizon Finnair Oyj is expected to under-perform the Creo Medical. In addition to that, Finnair Oyj is 1.25 times more volatile than Creo Medical Group. It trades about -0.03 of its total potential returns per unit of risk. Creo Medical Group is currently generating about -0.03 per unit of volatility. If you would invest 2,750 in Creo Medical Group on November 27, 2024 and sell it today you would lose (1,262) from holding Creo Medical Group or give up 45.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Finnair Oyj vs. Creo Medical Group
Performance |
| Timeline |
| Finnair Oyj |
| Creo Medical Group |
Finnair Oyj and Creo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Creo Medical
The main advantage of trading using opposite Finnair Oyj and Creo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Creo Medical 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 Creo Medical will offset losses from the drop in Creo Medical's long position.| Finnair Oyj vs. Learning Technologies Group | Finnair Oyj vs. Nordea Bank Abp | Finnair Oyj vs. Tetragon Financial Group | Finnair Oyj vs. Westlake Chemical Corp |
| Creo Medical vs. Cairn Homes PLC | Creo Medical vs. Tetragon Financial Group | Creo Medical vs. Sparebank 1 SR | Creo Medical vs. Sparebanken Vest |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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