Correlation Between Vinpai SAS and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Vinpai SAS 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 Vinpai SAS and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinpai SAS and FNP Technologies SA, you can compare the effects of market volatilities on Vinpai SAS 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 Vinpai SAS with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinpai SAS and FNP Technologies.
Diversification Opportunities for Vinpai SAS and FNP Technologies
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vinpai and FNP is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Vinpai SAS and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Vinpai SAS 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 Vinpai SAS 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 Vinpai SAS i.e., Vinpai SAS and FNP Technologies go up and down completely randomly.
Pair Corralation between Vinpai SAS and FNP Technologies
Assuming the 90 days trading horizon Vinpai SAS is expected to under-perform the FNP Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Vinpai SAS is 2.01 times less risky than FNP Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The FNP Technologies SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 43.00 in FNP Technologies SA on September 3, 2024 and sell it today you would lose (37.00) from holding FNP Technologies SA or give up 86.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 74.37% |
| Values | Daily Returns |
Vinpai SAS vs. FNP Technologies SA
Performance |
| Timeline |
| Vinpai SAS |
| FNP Technologies |
Vinpai SAS and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinpai SAS and FNP Technologies
The main advantage of trading using opposite Vinpai SAS and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinpai SAS 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.| Vinpai SAS vs. Diagnostic Medical Systems | Vinpai SAS vs. X Fab Silicon | Vinpai SAS vs. STMicroelectronics NV | Vinpai SAS vs. Mediantechn |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |