Correlation Between Argan SA and Fonciere Inea
Can any of the company-specific risk be diversified away by investing in both Argan SA 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 Argan SA and Fonciere Inea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argan SA and Fonciere Inea, you can compare the effects of market volatilities on Argan SA 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 Argan SA with a short position of Fonciere Inea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argan SA and Fonciere Inea.
Diversification Opportunities for Argan SA and Fonciere Inea
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Argan and Fonciere is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Argan SA and Fonciere Inea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonciere Inea and Argan SA 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 Argan SA 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 Argan SA i.e., Argan SA and Fonciere Inea go up and down completely randomly.
Pair Corralation between Argan SA and Fonciere Inea
Assuming the 90 days trading horizon Argan SA is expected to under-perform the Fonciere Inea. In addition to that, Argan SA is 2.03 times more volatile than Fonciere Inea. It trades about -0.17 of its total potential returns per unit of risk. Fonciere Inea is currently generating about 0.06 per unit of volatility. If you would invest 3,070 in Fonciere Inea on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Fonciere Inea or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argan SA vs. Fonciere Inea
Performance |
| Timeline |
| Argan SA |
| Fonciere Inea |
Argan SA and Fonciere Inea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argan SA and Fonciere Inea
The main advantage of trading using opposite Argan SA and Fonciere Inea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argan SA 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.| Argan SA vs. Fonciere Lyonnaise | Argan SA vs. Fonciere Inea | Argan SA vs. Societe de la | Argan SA vs. Icade 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |