Correlation Between Finnair Oyj and Emera Maine
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Emera Maine 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 Emera Maine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Emera Maine PFD, you can compare the effects of market volatilities on Finnair Oyj and Emera Maine 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 Emera Maine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Emera Maine.
Diversification Opportunities for Finnair Oyj and Emera Maine
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and Emera is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Emera Maine PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Maine PFD 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 Emera Maine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Maine PFD has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Emera Maine go up and down completely randomly.
Pair Corralation between Finnair Oyj and Emera Maine
If you would invest 9,825 in Emera Maine PFD on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Emera Maine PFD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Finnair Oyj vs. Emera Maine PFD
Performance |
| Timeline |
| Finnair Oyj |
| Emera Maine PFD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Finnair Oyj and Emera Maine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Emera Maine
The main advantage of trading using opposite Finnair Oyj and Emera Maine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Emera Maine 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 Emera Maine will offset losses from the drop in Emera Maine's long position.| Finnair Oyj vs. easyJet plc | Finnair Oyj vs. Norse Atlantic ASA | Finnair Oyj vs. Air New Zealand | Finnair Oyj vs. Air China Limited |
| Emera Maine vs. NextNav Warrant | Emera Maine vs. Ardelyx | Emera Maine vs. Sapiens International | Emera Maine vs. Where Food Comes |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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