Correlation Between Integragen and Fonciere Inea
Can any of the company-specific risk be diversified away by investing in both Integragen and Fonciere Inea 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 Integragen and Fonciere Inea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integragen and Fonciere Inea, you can compare the effects of market volatilities on Integragen and Fonciere Inea 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 Integragen with a short position of Fonciere Inea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integragen and Fonciere Inea.
Diversification Opportunities for Integragen and Fonciere Inea
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integragen and Fonciere is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Integragen and Fonciere Inea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonciere Inea and Integragen 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 Integragen are associated (or correlated) with Fonciere Inea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonciere Inea has no effect on the direction of Integragen i.e., Integragen and Fonciere Inea go up and down completely randomly.
Pair Corralation between Integragen and Fonciere Inea
Assuming the 90 days trading horizon Integragen is expected to under-perform the Fonciere Inea. In addition to that, Integragen is 4.4 times more volatile than Fonciere Inea. It trades about -0.18 of its total potential returns per unit of risk. Fonciere Inea is currently generating about 0.18 per unit of volatility. If you would invest 3,080 in Fonciere Inea on August 24, 2024 and sell it today you would earn a total of 110.00 from holding Fonciere Inea or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integragen vs. Fonciere Inea
Performance |
| Timeline |
| Integragen |
| Fonciere Inea |
Integragen and Fonciere Inea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integragen and Fonciere Inea
The main advantage of trading using opposite Integragen and Fonciere Inea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integragen position performs unexpectedly, Fonciere Inea 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 Fonciere Inea will offset losses from the drop in Fonciere Inea's long position.| Integragen vs. Biomerieux SA | Integragen vs. Eurofins Scientific SE | Integragen vs. Sartorius Stedim Biotech | Integragen vs. SEB SA |
| Fonciere Inea vs. Fonciere Lyonnaise | Fonciere Inea vs. Immobiliere Dassault SA | Fonciere Inea vs. Frey 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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