Correlation Between Finnair Oyj and GRIID Infrastructure
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and GRIID Infrastructure 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 GRIID Infrastructure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and GRIID Infrastructure Common, you can compare the effects of market volatilities on Finnair Oyj and GRIID Infrastructure 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 GRIID Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and GRIID Infrastructure.
Diversification Opportunities for Finnair Oyj and GRIID Infrastructure
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and GRIID is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and GRIID Infrastructure Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIID Infrastructure 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 GRIID Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIID Infrastructure has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and GRIID Infrastructure go up and down completely randomly.
Pair Corralation between Finnair Oyj and GRIID Infrastructure
Assuming the 90 days horizon Finnair Oyj is expected to under-perform the GRIID Infrastructure. But the pink sheet apears to be less risky and, when comparing its historical volatility, Finnair Oyj is 2.41 times less risky than GRIID Infrastructure. The pink sheet trades about -0.11 of its potential returns per unit of risk. The GRIID Infrastructure Common is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 91.00 in GRIID Infrastructure Common on August 24, 2024 and sell it today you would earn a total of 5.00 from holding GRIID Infrastructure Common or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Finnair Oyj vs. GRIID Infrastructure Common
Performance |
| Timeline |
| Finnair Oyj |
| GRIID Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Finnair Oyj and GRIID Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and GRIID Infrastructure
The main advantage of trading using opposite Finnair Oyj and GRIID Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, GRIID Infrastructure 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 GRIID Infrastructure will offset losses from the drop in GRIID Infrastructure'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 |
| GRIID Infrastructure vs. The Gap, | GRIID Infrastructure vs. AerSale Corp | GRIID Infrastructure vs. Finnair Oyj | GRIID Infrastructure vs. Air Lease |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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