Correlation Between Finnair Oyj and NESNVX
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By analyzing existing cross correlation between Finnair Oyj and NESNVX 125 15 SEP 30, you can compare the effects of market volatilities on Finnair Oyj and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and NESNVX.
Diversification Opportunities for Finnair Oyj and NESNVX
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finnair and NESNVX is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and NESNVX 125 15 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 125 15 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 125 15 has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and NESNVX go up and down completely randomly.
Pair Corralation between Finnair Oyj and NESNVX
Assuming the 90 days horizon Finnair Oyj is expected to generate 22.72 times more return on investment than NESNVX. However, Finnair Oyj is 22.72 times more volatile than NESNVX 125 15 SEP 30. It trades about 0.03 of its potential returns per unit of risk. NESNVX 125 15 SEP 30 is currently generating about 0.0 per unit of risk. If you would invest 666.00 in Finnair Oyj on September 25, 2024 and sell it today you would lose (416.00) from holding Finnair Oyj or give up 62.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 30.78% |
Values | Daily Returns |
Finnair Oyj vs. NESNVX 125 15 SEP 30
Performance |
Timeline |
Finnair Oyj |
NESNVX 125 15 |
Finnair Oyj and NESNVX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Finnair Oyj and NESNVX
The main advantage of trading using opposite Finnair Oyj and NESNVX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, NESNVX 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 NESNVX will offset losses from the drop in NESNVX'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 |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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