Correlation Between Fonciere Lyonnaise and Caisse Rgionale

Can any of the company-specific risk be diversified away by investing in both Fonciere Lyonnaise and Caisse Rgionale 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 Fonciere Lyonnaise and Caisse Rgionale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fonciere Lyonnaise and Caisse rgionale de, you can compare the effects of market volatilities on Fonciere Lyonnaise and Caisse Rgionale 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 Fonciere Lyonnaise with a short position of Caisse Rgionale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonciere Lyonnaise and Caisse Rgionale.

Diversification Opportunities for Fonciere Lyonnaise and Caisse Rgionale

0.0

Correlation Coefficient

Fonciere Lyonnaise  Caisse Rgionale

Pay attention - limited upside

The 3 months correlation between Fonciere and Caisse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fonciere Lyonnaise and Caisse rgionale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caisse rgionale de and Fonciere Lyonnaise 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 Fonciere Lyonnaise are associated (or correlated) with Caisse Rgionale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caisse rgionale de has no effect on the direction of Fonciere Lyonnaise i.e., Fonciere Lyonnaise and Caisse Rgionale go up and down completely randomly.

Pair Corralation between Fonciere Lyonnaise and Caisse Rgionale

If you would invest  8,002  in Caisse rgionale de on September 3, 2024 and sell it today you would earn a total of  366.00  from holding Caisse rgionale de or generate 4.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fonciere Lyonnaise  vs.  Caisse rgionale de

Fonciere Lyonnaise

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Fonciere Lyonnaise has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fonciere Lyonnaise is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Caisse rgionale de

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Caisse rgionale de are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Caisse Rgionale is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fonciere Lyonnaise and Caisse Rgionale

The main advantage of trading using opposite Fonciere Lyonnaise and Caisse Rgionale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonciere Lyonnaise position performs unexpectedly, Caisse Rgionale 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 Caisse Rgionale will offset losses from the drop in Caisse Rgionale's long position.

The idea behind Fonciere Lyonnaise and Caisse rgionale de pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.