Correlation Between Air France and Acces Industrie
Can any of the company-specific risk be diversified away by investing in both Air France and Acces Industrie 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 Air France and Acces Industrie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air France KLM SA and Acces Industrie SA, you can compare the effects of market volatilities on Air France and Acces Industrie 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 Air France with a short position of Acces Industrie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air France and Acces Industrie.
Diversification Opportunities for Air France and Acces Industrie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Acces is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air France KLM SA and Acces Industrie SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acces Industrie SA and Air France 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 Air France KLM SA are associated (or correlated) with Acces Industrie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acces Industrie SA has no effect on the direction of Air France i.e., Air France and Acces Industrie go up and down completely randomly.
Pair Corralation between Air France and Acces Industrie
If you would invest 752.00 in Air France KLM SA on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Air France KLM SA or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Air France KLM SA vs. Acces Industrie SA
Performance |
| Timeline |
| Air France KLM |
| Acces Industrie SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air France and Acces Industrie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air France and Acces Industrie
The main advantage of trading using opposite Air France and Acces Industrie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air France position performs unexpectedly, Acces Industrie 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 Acces Industrie will offset losses from the drop in Acces Industrie's long position.The idea behind Air France KLM SA and Acces Industrie 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.| Acces Industrie vs. Sogeclair SA | Acces Industrie vs. Eutelsat Communications SA | Acces Industrie vs. Sartorius Stedim Biotech | Acces Industrie vs. Technip Energies BV |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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