Correlation Between Fonciere Inea and Altamir SCA
Can any of the company-specific risk be diversified away by investing in both Fonciere Inea and Altamir SCA 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 Inea and Altamir SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonciere Inea and Altamir SCA, you can compare the effects of market volatilities on Fonciere Inea and Altamir SCA 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 Inea with a short position of Altamir SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonciere Inea and Altamir SCA.
Diversification Opportunities for Fonciere Inea and Altamir SCA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fonciere and Altamir is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fonciere Inea and Altamir SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamir SCA and Fonciere Inea 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 Inea are associated (or correlated) with Altamir SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamir SCA has no effect on the direction of Fonciere Inea i.e., Fonciere Inea and Altamir SCA go up and down completely randomly.
Pair Corralation between Fonciere Inea and Altamir SCA
Assuming the 90 days trading horizon Fonciere Inea is expected to generate 0.5 times more return on investment than Altamir SCA. However, Fonciere Inea is 1.99 times less risky than Altamir SCA. It trades about 0.02 of its potential returns per unit of risk. Altamir SCA is currently generating about -0.04 per unit of risk. If you would invest 3,050 in Fonciere Inea on September 5, 2024 and sell it today you would earn a total of 30.00 from holding Fonciere Inea or generate 0.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Fonciere Inea vs. Altamir SCA
Performance |
Timeline |
Fonciere Inea |
Altamir SCA |
Fonciere Inea and Altamir SCA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fonciere Inea and Altamir SCA
The main advantage of trading using opposite Fonciere Inea and Altamir SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonciere Inea position performs unexpectedly, Altamir SCA 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 Altamir SCA will offset losses from the drop in Altamir SCA's long position.Fonciere Inea vs. Fonciere Lyonnaise | Fonciere Inea vs. Altarea SCA | Fonciere Inea vs. Immobiliere Dassault SA | Fonciere Inea vs. Argan SA |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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