Correlation Between Bilendi and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Bilendi 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 Bilendi and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilendi and FNP Technologies SA, you can compare the effects of market volatilities on Bilendi 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 Bilendi with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilendi and FNP Technologies.
Diversification Opportunities for Bilendi and FNP Technologies
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bilendi and FNP is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bilendi and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Bilendi 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 Bilendi 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 Bilendi i.e., Bilendi and FNP Technologies go up and down completely randomly.
Pair Corralation between Bilendi and FNP Technologies
Assuming the 90 days trading horizon Bilendi is expected to generate 0.32 times more return on investment than FNP Technologies. However, Bilendi is 3.11 times less risky than FNP Technologies. It trades about -0.1 of its potential returns per unit of risk. FNP Technologies SA is currently generating about -0.09 per unit of risk. If you would invest 1,920 in Bilendi on September 3, 2024 and sell it today you would lose (550.00) from holding Bilendi or give up 28.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilendi vs. FNP Technologies SA
Performance |
| Timeline |
| Bilendi |
| FNP Technologies |
Bilendi and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilendi and FNP Technologies
The main advantage of trading using opposite Bilendi and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilendi 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.| Bilendi vs. Linedata Services SA | Bilendi vs. Groupe Pizzorno Environnement | Bilendi vs. Affluent Medical SAS | Bilendi vs. Axway Software |
| FNP Technologies vs. Linedata Services SA | FNP Technologies vs. Affluent Medical SAS | FNP Technologies vs. Eutelsat Communications SA | FNP Technologies vs. Gaztransport Technigaz SAS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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