Correlation Between Finnair Oyj and Mountain Lake
Can any of the company-specific risk be diversified away by investing in both Finnair Oyj and Mountain Lake 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 Mountain Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnair Oyj and Mountain Lake Acquisition, you can compare the effects of market volatilities on Finnair Oyj and Mountain Lake 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 Mountain Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnair Oyj and Mountain Lake.
Diversification Opportunities for Finnair Oyj and Mountain Lake
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Finnair and Mountain is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Finnair Oyj and Mountain Lake Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Lake Acquisition 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 Mountain Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Lake Acquisition has no effect on the direction of Finnair Oyj i.e., Finnair Oyj and Mountain Lake go up and down completely randomly.
Pair Corralation between Finnair Oyj and Mountain Lake
Assuming the 90 days horizon Finnair Oyj is expected to generate 2.15 times more return on investment than Mountain Lake. However, Finnair Oyj is 2.15 times more volatile than Mountain Lake Acquisition. It trades about 0.18 of its potential returns per unit of risk. Mountain Lake Acquisition is currently generating about 0.12 per unit of risk. If you would invest 308.00 in Finnair Oyj on July 7, 2025 and sell it today you would earn a total of 67.00 from holding Finnair Oyj or generate 21.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finnair Oyj vs. Mountain Lake Acquisition
Performance |
| Timeline |
| Finnair Oyj |
| Mountain Lake Acquisition |
Finnair Oyj and Mountain Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnair Oyj and Mountain Lake
The main advantage of trading using opposite Finnair Oyj and Mountain Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnair Oyj position performs unexpectedly, Mountain Lake 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 Mountain Lake will offset losses from the drop in Mountain Lake'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 |
| Mountain Lake vs. The Peoples Insurance | Mountain Lake vs. Xenia Hotels Resorts | Mountain Lake vs. Reinsurance Group of | Mountain Lake vs. Host Hotels Resorts |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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