Correlation Between Altamir SCA and Fonciere Lyonnaise
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Fonciere Lyonnaise 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 Altamir SCA and Fonciere Lyonnaise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Fonciere Lyonnaise, you can compare the effects of market volatilities on Altamir SCA and Fonciere Lyonnaise 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 Altamir SCA with a short position of Fonciere Lyonnaise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Fonciere Lyonnaise.
Diversification Opportunities for Altamir SCA and Fonciere Lyonnaise
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altamir and Fonciere is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Fonciere Lyonnaise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonciere Lyonnaise and Altamir SCA 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 Altamir SCA are associated (or correlated) with Fonciere Lyonnaise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonciere Lyonnaise has no effect on the direction of Altamir SCA i.e., Altamir SCA and Fonciere Lyonnaise go up and down completely randomly.
Pair Corralation between Altamir SCA and Fonciere Lyonnaise
Assuming the 90 days trading horizon Altamir SCA is expected to generate 1.01 times more return on investment than Fonciere Lyonnaise. However, Altamir SCA is 1.01 times more volatile than Fonciere Lyonnaise. It trades about 0.0 of its potential returns per unit of risk. Fonciere Lyonnaise is currently generating about 0.0 per unit of risk. If you would invest 2,354 in Altamir SCA on September 6, 2024 and sell it today you would lose (44.00) from holding Altamir SCA or give up 1.87% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Altamir SCA vs. Fonciere Lyonnaise
Performance |
Timeline |
Altamir SCA |
Fonciere Lyonnaise |
Altamir SCA and Fonciere Lyonnaise Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Altamir SCA and Fonciere Lyonnaise
The main advantage of trading using opposite Altamir SCA and Fonciere Lyonnaise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Fonciere Lyonnaise 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 Fonciere Lyonnaise will offset losses from the drop in Fonciere Lyonnaise's long position.The idea behind Altamir SCA and Fonciere Lyonnaise 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.Fonciere Lyonnaise vs. Societe de la | Fonciere Lyonnaise vs. Mercialys SA | Fonciere Lyonnaise vs. ABC arbitrage SA | Fonciere Lyonnaise vs. Gecina SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |