Correlation Between Stradim Espace and FIPP SA
Can any of the company-specific risk be diversified away by investing in both Stradim Espace and FIPP SA 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 Stradim Espace and FIPP SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stradim Espace Finances and FIPP SA, you can compare the effects of market volatilities on Stradim Espace and FIPP SA 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 Stradim Espace with a short position of FIPP SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stradim Espace and FIPP SA.
Diversification Opportunities for Stradim Espace and FIPP SA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stradim and FIPP is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Stradim Espace Finances and FIPP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIPP SA and Stradim Espace 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 Stradim Espace Finances are associated (or correlated) with FIPP SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIPP SA has no effect on the direction of Stradim Espace i.e., Stradim Espace and FIPP SA go up and down completely randomly.
Pair Corralation between Stradim Espace and FIPP SA
Assuming the 90 days trading horizon Stradim Espace Finances is expected to under-perform the FIPP SA. In addition to that, Stradim Espace is 1.45 times more volatile than FIPP SA. It trades about -0.07 of its total potential returns per unit of risk. FIPP SA is currently generating about 0.01 per unit of volatility. If you would invest 14.00 in FIPP SA on August 29, 2024 and sell it today you would earn a total of 0.00 from holding FIPP 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 |
Stradim Espace Finances vs. FIPP SA
Performance |
| Timeline |
| Stradim Espace Finances |
| FIPP SA |
Stradim Espace and FIPP SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stradim Espace and FIPP SA
The main advantage of trading using opposite Stradim Espace and FIPP SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stradim Espace position performs unexpectedly, FIPP SA 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 FIPP SA will offset losses from the drop in FIPP SA's long position.| Stradim Espace vs. Covivio SA | Stradim Espace vs. Altarea SCA | Stradim Espace vs. Icade SA | Stradim Espace vs. Gecina 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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