Correlation Between Finnair Oyj and Caravelle International
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Caravelle International 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 Caravelle International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Caravelle International Group, you can compare the effects of market volatilities on Finnair Oyj and Caravelle International 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 Caravelle International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Caravelle International.
Diversification Opportunities for Finnair Oyj and Caravelle International
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Finnair and Caravelle is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Caravelle International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caravelle International 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 Caravelle International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caravelle International has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Caravelle International go up and down completely randomly.
Pair Corralation between Finnair Oyj and Caravelle International
Assuming the 90 days horizon Finnair Oyj is expected to generate 0.16 times more return on investment than Caravelle International. However, Finnair Oyj is 6.09 times less risky than Caravelle International. It trades about 0.21 of its potential returns per unit of risk. Caravelle International Group is currently generating about -0.15 per unit of risk. If you would invest 235.00 in Finnair Oyj on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Finnair Oyj or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Finnair Oyj vs. Caravelle International Group
Performance |
| Timeline |
| Finnair Oyj |
| Caravelle International |
Finnair Oyj and Caravelle International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Caravelle International
The main advantage of trading using opposite Finnair Oyj and Caravelle International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Caravelle International 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 Caravelle International will offset losses from the drop in Caravelle International's long position.| Finnair Oyj vs. Norse Atlantic ASA | Finnair Oyj vs. Air New Zealand | Finnair Oyj vs. Air China Limited | Finnair Oyj vs. AirAsia Group Berhad |
| Caravelle International vs. Aldel Financial II | Caravelle International vs. Zoom Video Communications | Caravelle International vs. Videolocity International | Caravelle International vs. Bm Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |