Correlation Between Finnair Oyj and Lendlease Global
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Lendlease Global 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 Lendlease Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Lendlease Global Commercial, you can compare the effects of market volatilities on Finnair Oyj and Lendlease Global 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 Lendlease Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Lendlease Global.
Diversification Opportunities for Finnair Oyj and Lendlease Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finnair and Lendlease is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Lendlease Global Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Global Com 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 Lendlease Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Global Com has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Lendlease Global go up and down completely randomly.
Pair Corralation between Finnair Oyj and Lendlease Global
Assuming the 90 days horizon Finnair Oyj is expected to under-perform the Lendlease Global. In addition to that, Finnair Oyj is 8.76 times more volatile than Lendlease Global Commercial. It trades about -0.12 of its total potential returns per unit of risk. Lendlease Global Commercial is currently generating about 0.09 per unit of volatility. If you would invest 44.00 in Lendlease Global Commercial on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Lendlease Global Commercial or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Finnair Oyj vs. Lendlease Global Commercial
Performance |
| Timeline |
| Finnair Oyj |
| Lendlease Global Com |
Finnair Oyj and Lendlease Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Lendlease Global
The main advantage of trading using opposite Finnair Oyj and Lendlease Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Lendlease Global 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 Lendlease Global will offset losses from the drop in Lendlease Global'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 |
| Lendlease Global vs. Legacy Education | Lendlease Global vs. Apple Inc | Lendlease Global vs. NVIDIA | Lendlease Global vs. Microsoft |
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.
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