Correlation Between Finnair Oyj and PHILLIPS
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By analyzing existing cross correlation between Finnair Oyj and PHILLIPS PETE 7, you can compare the effects of market volatilities on Finnair Oyj and PHILLIPS 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 PHILLIPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and PHILLIPS.
Diversification Opportunities for Finnair Oyj and PHILLIPS
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Finnair and PHILLIPS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and PHILLIPS PETE 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILLIPS PETE 7 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 PHILLIPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILLIPS PETE 7 has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and PHILLIPS go up and down completely randomly.
Pair Corralation between Finnair Oyj and PHILLIPS
Assuming the 90 days horizon Finnair Oyj is expected to generate 22.54 times more return on investment than PHILLIPS. However, Finnair Oyj is 22.54 times more volatile than PHILLIPS PETE 7. It trades about 0.03 of its potential returns per unit of risk. PHILLIPS PETE 7 is currently generating about 0.01 per unit of risk. If you would invest 783.00 in Finnair Oyj on August 31, 2024 and sell it today you would lose (550.00) from holding Finnair Oyj or give up 70.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 56.3% |
| Values | Daily Returns |
Finnair Oyj vs. PHILLIPS PETE 7
Performance |
| Timeline |
| Finnair Oyj |
| PHILLIPS PETE 7 |
Finnair Oyj and PHILLIPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and PHILLIPS
The main advantage of trading using opposite Finnair Oyj and PHILLIPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, PHILLIPS 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 PHILLIPS will offset losses from the drop in PHILLIPS's long position.| Finnair Oyj vs. Copa Holdings SA | Finnair Oyj vs. United Airlines Holdings | Finnair Oyj vs. Delta Air Lines | Finnair Oyj vs. SkyWest |
| PHILLIPS vs. Sabra Healthcare REIT | PHILLIPS vs. Alvarium Tiedemann Holdings | PHILLIPS vs. Vita Coco | PHILLIPS vs. Westrock Coffee |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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