Correlation Between Finnair Oyj and INEO Tech
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and INEO Tech 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 Finnair Oyj and INEO Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and INEO Tech Corp, you can compare the effects of market volatilities on Finnair Oyj and INEO Tech 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 INEO Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and INEO Tech.
Diversification Opportunities for Finnair Oyj and INEO Tech
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Finnair and INEO is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and INEO Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INEO Tech Corp 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 INEO Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INEO Tech Corp has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and INEO Tech go up and down completely randomly.
Pair Corralation between Finnair Oyj and INEO Tech
Assuming the 90 days horizon Finnair Oyj is expected to generate 0.11 times more return on investment than INEO Tech. However, Finnair Oyj is 8.8 times less risky than INEO Tech. It trades about -0.08 of its potential returns per unit of risk. INEO Tech Corp is currently generating about -0.03 per unit of risk. If you would invest 375.00 in Finnair Oyj on September 9, 2025 and sell it today you would lose (40.00) from holding Finnair Oyj or give up 10.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Finnair Oyj vs. INEO Tech Corp
Performance |
| Timeline |
| Finnair Oyj |
| INEO Tech Corp |
Finnair Oyj and INEO Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and INEO Tech
The main advantage of trading using opposite Finnair Oyj and INEO Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, INEO Tech 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 INEO Tech will offset losses from the drop in INEO Tech's long position.| Finnair Oyj vs. China Eastern Airlines | Finnair Oyj vs. Air China Limited | Finnair Oyj vs. Singapore Airlines | Finnair Oyj vs. Singapore Airlines |
| INEO Tech vs. Specificity | INEO Tech vs. SigmaBroadband Co | INEO Tech vs. American Films | INEO Tech vs. Enthusiast Gaming Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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