Correlation Between Finnair Oyj and CATERPILLAR
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By analyzing existing cross correlation between Finnair Oyj and CATERPILLAR INC 53, you can compare the effects of market volatilities on Finnair Oyj and CATERPILLAR 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 CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and CATERPILLAR.
Diversification Opportunities for Finnair Oyj and CATERPILLAR
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Finnair and CATERPILLAR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and CATERPILLAR INC 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR INC 53 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 CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR INC 53 has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and CATERPILLAR go up and down completely randomly.
Pair Corralation between Finnair Oyj and CATERPILLAR
Assuming the 90 days horizon Finnair Oyj is expected to generate 4.23 times more return on investment than CATERPILLAR. However, Finnair Oyj is 4.23 times more volatile than CATERPILLAR INC 53. It trades about 0.27 of its potential returns per unit of risk. CATERPILLAR INC 53 is currently generating about 0.0 per unit of risk. If you would invest 235.00 in Finnair Oyj on November 30, 2024 and sell it today you would earn a total of 116.00 from holding Finnair Oyj or generate 49.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.18% |
| Values | Daily Returns |
Finnair Oyj vs. CATERPILLAR INC 53
Performance |
| Timeline |
| Finnair Oyj |
| CATERPILLAR INC 53 |
Finnair Oyj and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and CATERPILLAR
The main advantage of trading using opposite Finnair Oyj and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR'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 |
| CATERPILLAR vs. HomeTrust Bancshares | CATERPILLAR vs. Porvair plc | CATERPILLAR vs. Corsair Gaming | CATERPILLAR vs. Douglas Emmett |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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