Correlation Between Finnair Oyj and Condor Resources
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Condor Resources 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 Condor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Condor Resources, you can compare the effects of market volatilities on Finnair Oyj and Condor Resources 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 Condor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Condor Resources.
Diversification Opportunities for Finnair Oyj and Condor Resources
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Finnair and Condor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Condor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Condor Resources 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 Condor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Condor Resources has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Condor Resources go up and down completely randomly.
Pair Corralation between Finnair Oyj and Condor Resources
Assuming the 90 days horizon Finnair Oyj is expected to under-perform the Condor Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, Finnair Oyj is 2.3 times less risky than Condor Resources. The pink sheet trades about -0.18 of its potential returns per unit of risk. The Condor Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Condor Resources on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Condor Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Finnair Oyj vs. Condor Resources
Performance |
| Timeline |
| Finnair Oyj |
| Condor Resources |
Finnair Oyj and Condor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Condor Resources
The main advantage of trading using opposite Finnair Oyj and Condor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Condor Resources 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 Condor Resources will offset losses from the drop in Condor Resources' 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 |
| Condor Resources vs. FitLife Brands, Common | Condor Resources vs. U Haul Holding | Condor Resources vs. AerSale Corp | Condor Resources vs. Finnair Oyj |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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