Correlation Between Air France and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Air France and FNP 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 FNP 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 FNP Technologies SA, you can compare the effects of market volatilities on Air France and FNP 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 FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air France and FNP Technologies.
Diversification Opportunities for Air France and FNP Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and FNP is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Air France KLM SA and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP 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 FNP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNP Technologies has no effect on the direction of Air France i.e., Air France and FNP Technologies go up and down completely randomly.
Pair Corralation between Air France and FNP Technologies
If you would invest 6.00 in FNP Technologies SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding FNP Technologies SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Air France KLM SA vs. FNP Technologies SA
Performance |
| Timeline |
| Air France KLM |
| FNP Technologies |
Air France and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air France and FNP Technologies
The main advantage of trading using opposite Air France and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air France position performs unexpectedly, FNP 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 FNP Technologies will offset losses from the drop in FNP Technologies' long position.| Air France vs. Reworld Media | Air France vs. Groupe Pizzorno Environnement | Air France vs. Fill Up Media | Air France vs. Metalliance SA |
| FNP Technologies vs. Blockchain Group SA | FNP Technologies vs. Adocia | FNP Technologies vs. Manitou BF SA | FNP Technologies vs. Ossiam Minimum Variance |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |