Correlation Between China Aircraft and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Finnair 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 China Aircraft and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and Finnair Oyj, you can compare the effects of market volatilities on China Aircraft and Finnair 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 China Aircraft with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Finnair Oyj.
Diversification Opportunities for China Aircraft and Finnair Oyj
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Finnair is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and China Aircraft 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 China Aircraft Leasing are associated (or correlated) with Finnair Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnair Oyj has no effect on the direction of China Aircraft i.e., China Aircraft and Finnair Oyj go up and down completely randomly.
Pair Corralation between China Aircraft and Finnair Oyj
If you would invest 40.00 in China Aircraft Leasing on August 29, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Finnair Oyj
Performance |
| Timeline |
| China Aircraft Leasing |
| Finnair Oyj |
China Aircraft and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Finnair Oyj
The main advantage of trading using opposite China Aircraft and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Finnair 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 Finnair Oyj will offset losses from the drop in Finnair Oyj's long position.| China Aircraft vs. Senmiao Technology | China Aircraft vs. BCE Inc | China Aircraft vs. Olympic Steel | China Aircraft vs. WiMi Hologram Cloud |
| Finnair Oyj vs. easyJet plc | Finnair Oyj vs. Norse Atlantic ASA | Finnair Oyj vs. Air New Zealand | Finnair Oyj vs. Air China Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |