Correlation Between Sogeclair and Air France
Can any of the company-specific risk be diversified away by investing in both Sogeclair and Air France 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 Sogeclair and Air France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogeclair SA and Air France KLM SA, you can compare the effects of market volatilities on Sogeclair and Air France 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 Sogeclair with a short position of Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogeclair and Air France.
Diversification Opportunities for Sogeclair and Air France
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sogeclair and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair SA and Air France KLM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air France KLM and Sogeclair 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 Sogeclair SA are associated (or correlated) with Air France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air France KLM has no effect on the direction of Sogeclair i.e., Sogeclair and Air France go up and down completely randomly.
Pair Corralation between Sogeclair and Air France
Assuming the 90 days trading horizon Sogeclair SA is expected to generate 0.86 times more return on investment than Air France. However, Sogeclair SA is 1.16 times less risky than Air France. It trades about 0.02 of its potential returns per unit of risk. Air France KLM SA is currently generating about -0.02 per unit of risk. If you would invest 1,651 in Sogeclair SA on September 19, 2024 and sell it today you would earn a total of 189.00 from holding Sogeclair SA or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sogeclair SA vs. Air France KLM SA
Performance |
| Timeline |
| Sogeclair SA |
| Air France KLM |
Sogeclair and Air France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogeclair and Air France
The main advantage of trading using opposite Sogeclair and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogeclair position performs unexpectedly, Air France 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 Air France will offset losses from the drop in Air France's long position.| Sogeclair vs. LVMH Mot Hennessy | Sogeclair vs. LOreal SA | Sogeclair vs. Hermes International SCA | Sogeclair 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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