Correlation Between Finnair Oyj and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Fidus Investment 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 Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Fidus Investment Corp, you can compare the effects of market volatilities on Finnair Oyj and Fidus Investment 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 Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Fidus Investment.
Diversification Opportunities for Finnair Oyj and Fidus Investment
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finnair and Fidus is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment Corp 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 Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Fidus Investment go up and down completely randomly.
Pair Corralation between Finnair Oyj and Fidus Investment
Assuming the 90 days horizon Finnair Oyj is expected to generate 20.39 times more return on investment than Fidus Investment. However, Finnair Oyj is 20.39 times more volatile than Fidus Investment Corp. It trades about 0.03 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.08 per unit of risk. If you would invest 749.00 in Finnair Oyj on September 3, 2024 and sell it today you would lose (516.00) from holding Finnair Oyj or give up 68.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Finnair Oyj vs. Fidus Investment Corp
Performance |
| Timeline |
| Finnair Oyj |
| Fidus Investment Corp |
Finnair Oyj and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Fidus Investment
The main advantage of trading using opposite Finnair Oyj and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Fidus Investment 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 Fidus Investment will offset losses from the drop in Fidus Investment'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 |
| Fidus Investment vs. Federated Premier Municipal | Fidus Investment vs. Blackrock Muniyield | Fidus Investment vs. Federated Investors B | Fidus Investment vs. SEI Investments |
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
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |