Correlation Between Finnair Oyj and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Oculis Holding 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 Oculis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Oculis Holding AG, you can compare the effects of market volatilities on Finnair Oyj and Oculis Holding 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 Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Oculis Holding.
Diversification Opportunities for Finnair Oyj and Oculis Holding
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and Oculis is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG 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 Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Oculis Holding go up and down completely randomly.
Pair Corralation between Finnair Oyj and Oculis Holding
Assuming the 90 days horizon Finnair Oyj is expected to under-perform the Oculis Holding. But the pink sheet apears to be less risky and, when comparing its historical volatility, Finnair Oyj is 6.99 times less risky than Oculis Holding. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Oculis Holding AG is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Oculis Holding AG on October 25, 2024 and sell it today you would earn a total of 580.00 from holding Oculis Holding AG or generate 111.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Finnair Oyj vs. Oculis Holding AG
Performance |
| Timeline |
| Finnair Oyj |
| Oculis Holding AG |
Finnair Oyj and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Oculis Holding
The main advantage of trading using opposite Finnair Oyj and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding'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 |
| Oculis Holding vs. LAir Liquide SA | Oculis Holding vs. United Fire Group | Oculis Holding vs. Finnair Oyj | Oculis Holding vs. Pekin Life Insurance |
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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