Correlation Between Air France and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Air France and Exail Technologies 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 Exail Technologies 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 Exail Technologies SA, you can compare the effects of market volatilities on Air France and Exail Technologies 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 Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air France and Exail Technologies.
Diversification Opportunities for Air France and Exail Technologies
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and Exail is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Air France KLM SA and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies 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 Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Air France i.e., Air France and Exail Technologies go up and down completely randomly.
Pair Corralation between Air France and Exail Technologies
Assuming the 90 days horizon Air France KLM SA is expected to under-perform the Exail Technologies. In addition to that, Air France is 1.23 times more volatile than Exail Technologies SA. It trades about -0.18 of its total potential returns per unit of risk. Exail Technologies SA is currently generating about 0.26 per unit of volatility. If you would invest 1,722 in Exail Technologies SA on October 25, 2024 and sell it today you would earn a total of 160.00 from holding Exail Technologies SA or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air France KLM SA vs. Exail Technologies SA
Performance |
| Timeline |
| Air France KLM |
| Exail Technologies |
Air France and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air France and Exail Technologies
The main advantage of trading using opposite Air France and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air France position performs unexpectedly, Exail Technologies 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Air France vs. Eutelsat Communications SA | Air France vs. Diagnostic Medical Systems | Air France vs. ZCCM Investments Holdings | Air France vs. ISPD Network SA |
| Exail Technologies vs. Technip Energies BV | Exail Technologies vs. Netmedia Group SA | Exail Technologies vs. Jacquet Metal Service | Exail Technologies vs. Aures 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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