Correlation Between Air France and Mediantechn
Can any of the company-specific risk be diversified away by investing in both Air France and Mediantechn 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 Mediantechn 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 Mediantechn, you can compare the effects of market volatilities on Air France and Mediantechn 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 Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air France and Mediantechn.
Diversification Opportunities for Air France and Mediantechn
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Air and Mediantechn is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Air France KLM SA and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn 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 Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of Air France i.e., Air France and Mediantechn go up and down completely randomly.
Pair Corralation between Air France and Mediantechn
Assuming the 90 days horizon Air France KLM SA is expected to generate 0.42 times more return on investment than Mediantechn. However, Air France KLM SA is 2.38 times less risky than Mediantechn. It trades about 0.03 of its potential returns per unit of risk. Mediantechn is currently generating about -0.08 per unit of risk. If you would invest 822.00 in Air France KLM SA on November 28, 2024 and sell it today you would earn a total of 37.00 from holding Air France KLM SA or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air France KLM SA vs. Mediantechn
Performance |
| Timeline |
| Air France KLM |
| Mediantechn |
Air France and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air France and Mediantechn
The main advantage of trading using opposite Air France and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air France position performs unexpectedly, Mediantechn 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 Mediantechn will offset losses from the drop in Mediantechn's long position.| Air France vs. CMG Cleantech SA | Air France vs. Sidetrade | Air France vs. FNP Technologies SA | Air France vs. Fill Up Media |
| Mediantechn vs. Kalray SA | Mediantechn vs. Biosynex | Mediantechn vs. Eurobio Scientific SA | Mediantechn vs. OSE Pharma 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |