Correlation Between Air France and GECI International
Can any of the company-specific risk be diversified away by investing in both Air France and GECI International 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 GECI International 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 GECI International SA, you can compare the effects of market volatilities on Air France and GECI International 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 GECI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air France and GECI International.
Diversification Opportunities for Air France and GECI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and GECI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air France KLM SA and GECI International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GECI International 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 GECI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GECI International has no effect on the direction of Air France i.e., Air France and GECI International go up and down completely randomly.
Pair Corralation between Air France and GECI International
If you would invest (100.00) in GECI International SA on November 6, 2024 and sell it today you would earn a total of 100.00 from holding GECI International SA or generate -100.0% 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. GECI International SA
Performance |
| Timeline |
| Air France KLM |
| GECI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Air France and GECI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air France and GECI International
The main advantage of trading using opposite Air France and GECI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air France position performs unexpectedly, GECI International 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 GECI International will offset losses from the drop in GECI International's long position.| Air France vs. Gaztransport Technigaz SAS | Air France vs. Soditech SA | Air France vs. CMG Cleantech SA | Air France vs. Groupe Pizzorno Environnement |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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