Correlation Between EXXON and Finnair Oyj
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By analyzing existing cross correlation between EXXON MOBIL P and Finnair Oyj, you can compare the effects of market volatilities on EXXON 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 EXXON with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXXON and Finnair Oyj.
Diversification Opportunities for EXXON and Finnair Oyj
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between EXXON and Finnair is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding EXXON MOBIL P and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and EXXON 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 EXXON MOBIL P 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 EXXON i.e., EXXON and Finnair Oyj go up and down completely randomly.
Pair Corralation between EXXON and Finnair Oyj
Assuming the 90 days trading horizon EXXON MOBIL P is expected to generate 0.48 times more return on investment than Finnair Oyj. However, EXXON MOBIL P is 2.08 times less risky than Finnair Oyj. It trades about 0.0 of its potential returns per unit of risk. Finnair Oyj is currently generating about -0.22 per unit of risk. If you would invest 7,554 in EXXON MOBIL P on October 23, 2024 and sell it today you would lose (7.00) from holding EXXON MOBIL P or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
EXXON MOBIL P vs. Finnair Oyj
Performance |
| Timeline |
| EXXON MOBIL P |
| Finnair Oyj |
EXXON and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXXON and Finnair Oyj
The main advantage of trading using opposite EXXON and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXXON 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.| EXXON vs. United Natural Foods | EXXON vs. Grocery Outlet Holding | EXXON vs. John Wiley Sons | EXXON vs. Albertsons Companies |
| Finnair Oyj vs. easyJet plc | Finnair Oyj vs. Norse Atlantic ASA | Finnair Oyj vs. Air New Zealand | Finnair Oyj vs. Air China Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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