Correlation Between Agripower France and Tonnellerie Francois
Can any of the company-specific risk be diversified away by investing in both Agripower France and Tonnellerie Francois 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 Agripower France and Tonnellerie Francois into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agripower France Sa and Tonnellerie Francois Freres, you can compare the effects of market volatilities on Agripower France and Tonnellerie Francois 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 Agripower France with a short position of Tonnellerie Francois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agripower France and Tonnellerie Francois.
Diversification Opportunities for Agripower France and Tonnellerie Francois
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agripower and Tonnellerie is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Agripower France Sa and Tonnellerie Francois Freres in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonnellerie Francois and Agripower 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 Agripower France Sa are associated (or correlated) with Tonnellerie Francois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonnellerie Francois has no effect on the direction of Agripower France i.e., Agripower France and Tonnellerie Francois go up and down completely randomly.
Pair Corralation between Agripower France and Tonnellerie Francois
Assuming the 90 days trading horizon Agripower France Sa is expected to under-perform the Tonnellerie Francois. In addition to that, Agripower France is 1.16 times more volatile than Tonnellerie Francois Freres. It trades about -0.22 of its total potential returns per unit of risk. Tonnellerie Francois Freres is currently generating about 0.05 per unit of volatility. If you would invest 2,899 in Tonnellerie Francois Freres on September 3, 2024 and sell it today you would earn a total of 61.00 from holding Tonnellerie Francois Freres or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agripower France Sa vs. Tonnellerie Francois Freres
Performance |
| Timeline |
| Agripower France |
| Tonnellerie Francois |
Agripower France and Tonnellerie Francois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agripower France and Tonnellerie Francois
The main advantage of trading using opposite Agripower France and Tonnellerie Francois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agripower France position performs unexpectedly, Tonnellerie Francois 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 Tonnellerie Francois will offset losses from the drop in Tonnellerie Francois' long position.| Agripower France vs. Glob Bioenergi | Agripower France vs. BIO UV Group | Agripower France vs. Voltalia SA | Agripower France vs. Hoffmann Green Cement |
| Tonnellerie Francois vs. SA Catana Group | Tonnellerie Francois vs. Piscines Desjoyaux SA | Tonnellerie Francois vs. Reworld Media | Tonnellerie Francois vs. Manitou BF 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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