Correlation Between EvoAir Holdings and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both EvoAir Holdings 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 EvoAir Holdings and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EvoAir Holdings and Finnair Oyj, you can compare the effects of market volatilities on EvoAir Holdings 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 EvoAir Holdings with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of EvoAir Holdings and Finnair Oyj.
Diversification Opportunities for EvoAir Holdings and Finnair Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EvoAir and Finnair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EvoAir Holdings and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings i.e., EvoAir Holdings and Finnair Oyj go up and down completely randomly.
Pair Corralation between EvoAir Holdings and Finnair Oyj
Given the investment horizon of 90 days EvoAir Holdings is expected to generate 74.67 times less return on investment than Finnair Oyj. But when comparing it to its historical volatility, EvoAir Holdings is 94.17 times less risky than Finnair Oyj. It trades about 0.06 of its potential returns per unit of risk. Finnair Oyj is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Finnair Oyj on November 3, 2024 and sell it today you would earn a total of 50.00 from holding Finnair Oyj or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
EvoAir Holdings vs. Finnair Oyj
Performance |
| Timeline |
| EvoAir Holdings |
| Finnair Oyj |
EvoAir Holdings and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EvoAir Holdings and Finnair Oyj
The main advantage of trading using opposite EvoAir Holdings and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EvoAir Holdings 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.| EvoAir Holdings vs. Verde Clean Fuels | EvoAir Holdings vs. US Global Investors | EvoAir Holdings vs. Capital Clean Energy | EvoAir Holdings vs. China Clean Energy |
| 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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