Correlation Between Finnair Oyj and Century Therapeutics
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Century Therapeutics 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 Century Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Century Therapeutics, you can compare the effects of market volatilities on Finnair Oyj and Century Therapeutics 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 Century Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Century Therapeutics.
Diversification Opportunities for Finnair Oyj and Century Therapeutics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finnair and Century is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Century Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Therapeutics 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 Century Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Therapeutics has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Century Therapeutics go up and down completely randomly.
Pair Corralation between Finnair Oyj and Century Therapeutics
Assuming the 90 days horizon Finnair Oyj is expected to generate 0.5 times more return on investment than Century Therapeutics. However, Finnair Oyj is 1.99 times less risky than Century Therapeutics. It trades about 0.21 of its potential returns per unit of risk. Century Therapeutics is currently generating about -0.61 per unit of risk. If you would invest 235.00 in Finnair Oyj on November 9, 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 Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Finnair Oyj vs. Century Therapeutics
Performance |
| Timeline |
| Finnair Oyj |
| Century Therapeutics |
Finnair Oyj and Century Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Century Therapeutics
The main advantage of trading using opposite Finnair Oyj and Century Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Century Therapeutics 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 Century Therapeutics will offset losses from the drop in Century Therapeutics' long position.| Finnair Oyj vs. Air Canada | Finnair Oyj vs. Dana Inc | Finnair Oyj vs. Fbec Worldwide | Finnair Oyj vs. Hill Street Beverage |
| Century Therapeutics vs. Edgewise Therapeutics | Century Therapeutics vs. C4 Therapeutics | Century Therapeutics vs. Mineralys Therapeutics, Common | Century Therapeutics vs. Cullinan Oncology LLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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