Correlation Between Finnair Oyj and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and VinFast Auto 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 VinFast Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and VinFast Auto Ltd, you can compare the effects of market volatilities on Finnair Oyj and VinFast Auto 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 VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and VinFast Auto.
Diversification Opportunities for Finnair Oyj and VinFast Auto
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finnair and VinFast is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto 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 VinFast Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinFast Auto has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and VinFast Auto go up and down completely randomly.
Pair Corralation between Finnair Oyj and VinFast Auto
Assuming the 90 days horizon Finnair Oyj is expected to generate 2.79 times less return on investment than VinFast Auto. In addition to that, Finnair Oyj is 1.06 times more volatile than VinFast Auto Ltd. It trades about 0.03 of its total potential returns per unit of risk. VinFast Auto Ltd is currently generating about 0.08 per unit of volatility. If you would invest 7.01 in VinFast Auto Ltd on September 19, 2024 and sell it today you would earn a total of 31.99 from holding VinFast Auto Ltd or generate 456.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.08% |
| Values | Daily Returns |
Finnair Oyj vs. VinFast Auto Ltd
Performance |
| Timeline |
| Finnair Oyj |
| VinFast Auto |
Finnair Oyj and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and VinFast Auto
The main advantage of trading using opposite Finnair Oyj and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, VinFast Auto 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 VinFast Auto will offset losses from the drop in VinFast Auto'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 |
| VinFast Auto vs. Asure Software | VinFast Auto vs. Mesa Air Group | VinFast Auto vs. Finnair Oyj | VinFast Auto vs. Mayfair Gold Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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