Correlation Between Playstudios and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both Playstudios 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 Playstudios and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playstudios and Finnair Oyj, you can compare the effects of market volatilities on Playstudios 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 Playstudios with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playstudios and Finnair Oyj.
Diversification Opportunities for Playstudios and Finnair Oyj
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playstudios and Finnair is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Playstudios and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and Playstudios 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 Playstudios 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 Playstudios i.e., Playstudios and Finnair Oyj go up and down completely randomly.
Pair Corralation between Playstudios and Finnair Oyj
Given the investment horizon of 90 days Playstudios is expected to generate 1.55 times more return on investment than Finnair Oyj. However, Playstudios is 1.55 times more volatile than Finnair Oyj. It trades about 0.15 of its potential returns per unit of risk. Finnair Oyj is currently generating about -0.03 per unit of risk. If you would invest 139.00 in Playstudios on October 26, 2024 and sell it today you would earn a total of 48.50 from holding Playstudios or generate 34.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Playstudios vs. Finnair Oyj
Performance |
Timeline |
Playstudios |
Finnair Oyj |
Playstudios and Finnair Oyj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Playstudios and Finnair Oyj
The main advantage of trading using opposite Playstudios and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playstudios 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.Playstudios vs. Blue Hat Interactive | Playstudios vs. Bilibili | Playstudios vs. Alpha Esports Tech | Playstudios vs. Victory Square Technologies |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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