Correlation Between Air France and Cesar SA
Can any of the company-specific risk be diversified away by investing in both Air France and Cesar 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 Air France and Cesar SA 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 Cesar SA, you can compare the effects of market volatilities on Air France and Cesar 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 Air France with a short position of Cesar SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air France and Cesar SA.
Diversification Opportunities for Air France and Cesar SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Cesar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air France KLM SA and Cesar SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cesar 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 Cesar SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cesar SA has no effect on the direction of Air France i.e., Air France and Cesar SA go up and down completely randomly.
Pair Corralation between Air France and Cesar SA
If you would invest 761.00 in Air France KLM SA on October 7, 2024 and sell it today you would lose (1.00) from holding Air France KLM SA or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Air France KLM SA vs. Cesar SA
Performance |
| Timeline |
| Air France KLM |
| Cesar SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air France and Cesar SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air France and Cesar SA
The main advantage of trading using opposite Air France and Cesar SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air France position performs unexpectedly, Cesar 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 Cesar SA will offset losses from the drop in Cesar SA's long position.| Air France vs. Manitou BF SA | Air France vs. 21Shares Polkadot ETP | Air France vs. Ekinops SA | Air France vs. Memscap Regpt |
| Cesar SA vs. Hitechpros | Cesar SA vs. Veolia Environnement VE | Cesar SA vs. Bilendi | Cesar SA vs. Exail Technologies 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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