Correlation Between Fonciere Lyonnaise and Rallye SA

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Can any of the company-specific risk be diversified away by investing in both Fonciere Lyonnaise and Rallye SA 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 Rallye SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonciere Lyonnaise and Rallye SA, you can compare the effects of market volatilities on Fonciere Lyonnaise and Rallye SA 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 Rallye SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonciere Lyonnaise and Rallye SA.

Diversification Opportunities for Fonciere Lyonnaise and Rallye SA

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Fonciere Lyonnaise and Rallye SA

If you would invest  6,420  in Fonciere Lyonnaise on September 6, 2024 and sell it today you would earn a total of  880.00  from holding Fonciere Lyonnaise or generate 13.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Fonciere Lyonnaise  vs.  Rallye SA

 Performance 
       Timeline  
Fonciere Lyonnaise 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Fonciere Lyonnaise are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Fonciere Lyonnaise sustained solid returns over the last few months and may actually be approaching a breakup point.
Rallye SA 

Risk-Adjusted Performance

0 of 100

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

Fonciere Lyonnaise and Rallye SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fonciere Lyonnaise and Rallye SA

The main advantage of trading using opposite Fonciere Lyonnaise and Rallye SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonciere Lyonnaise position performs unexpectedly, Rallye SA 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 Rallye SA will offset losses from the drop in Rallye SA's long position.
The idea behind Fonciere Lyonnaise and Rallye SA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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