Correlation Between Finnair Oyj and BERKSHIRE
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By analyzing existing cross correlation between Finnair Oyj and BERKSHIRE HATHAWAY ENERGY, you can compare the effects of market volatilities on Finnair Oyj and BERKSHIRE 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 BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and BERKSHIRE.
Diversification Opportunities for Finnair Oyj and BERKSHIRE
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Finnair and BERKSHIRE is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and BERKSHIRE HATHAWAY ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY ENERGY 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 BERKSHIRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BERKSHIRE HATHAWAY ENERGY has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and BERKSHIRE go up and down completely randomly.
Pair Corralation between Finnair Oyj and BERKSHIRE
Assuming the 90 days horizon Finnair Oyj is expected to generate 55.57 times more return on investment than BERKSHIRE. However, Finnair Oyj is 55.57 times more volatile than BERKSHIRE HATHAWAY ENERGY. It trades about 0.03 of its potential returns per unit of risk. BERKSHIRE HATHAWAY ENERGY is currently generating about 0.02 per unit of risk. If you would invest 872.00 in Finnair Oyj on September 3, 2024 and sell it today you would lose (639.00) from holding Finnair Oyj or give up 73.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.75% |
| Values | Daily Returns |
Finnair Oyj vs. BERKSHIRE HATHAWAY ENERGY
Performance |
| Timeline |
| Finnair Oyj |
| BERKSHIRE HATHAWAY ENERGY |
Finnair Oyj and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and BERKSHIRE
The main advantage of trading using opposite Finnair Oyj and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, BERKSHIRE 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 BERKSHIRE will offset losses from the drop in BERKSHIRE'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 |
| BERKSHIRE vs. Dennys Corp | BERKSHIRE vs. Perseus Mining Limited | BERKSHIRE vs. Western Acquisition Ventures | BERKSHIRE vs. Rave Restaurant Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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