Correlation Between Finnair Oyj and 06051GKH1
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By analyzing existing cross correlation between Finnair Oyj and BAC 5624556 04 FEB 28, you can compare the effects of market volatilities on Finnair Oyj and 06051GKH1 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 06051GKH1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and 06051GKH1.
Diversification Opportunities for Finnair Oyj and 06051GKH1
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and 06051GKH1 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and BAC 5624556 04 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAC 5624556 04 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 06051GKH1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAC 5624556 04 has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and 06051GKH1 go up and down completely randomly.
Pair Corralation between Finnair Oyj and 06051GKH1
Assuming the 90 days horizon Finnair Oyj is expected to under-perform the 06051GKH1. In addition to that, Finnair Oyj is 7.77 times more volatile than BAC 5624556 04 FEB 28. It trades about -0.05 of its total potential returns per unit of risk. BAC 5624556 04 FEB 28 is currently generating about -0.04 per unit of volatility. If you would invest 10,043 in BAC 5624556 04 FEB 28 on September 3, 2024 and sell it today you would lose (71.00) from holding BAC 5624556 04 FEB 28 or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Finnair Oyj vs. BAC 5624556 04 FEB 28
Performance |
| Timeline |
| Finnair Oyj |
| BAC 5624556 04 |
Finnair Oyj and 06051GKH1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and 06051GKH1
The main advantage of trading using opposite Finnair Oyj and 06051GKH1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, 06051GKH1 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 06051GKH1 will offset losses from the drop in 06051GKH1'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 |
| 06051GKH1 vs. Willamette Valley Vineyards | 06051GKH1 vs. Vita Coco | 06051GKH1 vs. Mesa Air Group | 06051GKH1 vs. Finnair Oyj |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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