Correlation Between Mindflair Plc and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both Mindflair Plc and Finnair Oyj 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 Mindflair Plc and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mindflair Plc and Finnair Oyj, you can compare the effects of market volatilities on Mindflair Plc and Finnair Oyj 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 Mindflair Plc with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mindflair Plc and Finnair Oyj.
Diversification Opportunities for Mindflair Plc and Finnair Oyj
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mindflair and Finnair is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mindflair Plc and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and Mindflair Plc 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 Mindflair Plc are associated (or correlated) with Finnair Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnair Oyj has no effect on the direction of Mindflair Plc i.e., Mindflair Plc and Finnair Oyj go up and down completely randomly.
Pair Corralation between Mindflair Plc and Finnair Oyj
Assuming the 90 days trading horizon Mindflair Plc is expected to generate 0.82 times more return on investment than Finnair Oyj. However, Mindflair Plc is 1.22 times less risky than Finnair Oyj. It trades about 0.01 of its potential returns per unit of risk. Finnair Oyj is currently generating about -0.4 per unit of risk. If you would invest 78.00 in Mindflair Plc on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Mindflair Plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mindflair Plc vs. Finnair Oyj
Performance |
| Timeline |
| Mindflair Plc |
| Finnair Oyj |
Mindflair Plc and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mindflair Plc and Finnair Oyj
The main advantage of trading using opposite Mindflair Plc and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mindflair Plc position performs unexpectedly, Finnair Oyj 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 Finnair Oyj will offset losses from the drop in Finnair Oyj's long position.| Mindflair Plc vs. CATCo Reinsurance Opportunities | Mindflair Plc vs. BH Macro Limited | Mindflair Plc vs. TMT Investments PLC | Mindflair Plc vs. Intermediate Capital Group |
| Finnair Oyj vs. Samsung Electronics Co | Finnair Oyj vs. Samsung Electronics Co | Finnair Oyj vs. Hyundai Motor | Finnair Oyj vs. Toyota Motor 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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