Correlation Between URU Metals and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both URU Metals 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 URU Metals and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between URU Metals and Finnair Oyj, you can compare the effects of market volatilities on URU Metals 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 URU Metals with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of URU Metals and Finnair Oyj.
Diversification Opportunities for URU Metals and Finnair Oyj
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between URU and Finnair is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding URU Metals and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and URU Metals 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 URU Metals 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 URU Metals i.e., URU Metals and Finnair Oyj go up and down completely randomly.
Pair Corralation between URU Metals and Finnair Oyj
Assuming the 90 days trading horizon URU Metals is expected to generate 3.38 times more return on investment than Finnair Oyj. However, URU Metals is 3.38 times more volatile than Finnair Oyj. It trades about 0.06 of its potential returns per unit of risk. Finnair Oyj is currently generating about 0.02 per unit of risk. If you would invest 7,500 in URU Metals on December 12, 2024 and sell it today you would earn a total of 6,500 from holding URU Metals or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
URU Metals vs. Finnair Oyj
Performance |
| Timeline |
| URU Metals |
| Finnair Oyj |
URU Metals and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with URU Metals and Finnair Oyj
The main advantage of trading using opposite URU Metals and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if URU Metals 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.| URU Metals vs. Zegona Communications Plc | ||
| URU Metals vs. Sunny Optical Technology | ||
| URU Metals vs. Take Two Interactive Software | ||
| URU Metals vs. International Biotechnology Trust |
| Finnair Oyj vs. Coor Service Management | ||
| Finnair Oyj vs. Tata Steel Limited | ||
| Finnair Oyj vs. Veolia Environnement VE | ||
| Finnair Oyj vs. Liontrust Asset Management |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |