Correlation Between Soc Centrale and Fonciere Lyonnaise
Can any of the company-specific risk be diversified away by investing in both Soc Centrale and Fonciere Lyonnaise 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 Soc Centrale and Fonciere Lyonnaise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soc Centrale Bois and Fonciere Lyonnaise, you can compare the effects of market volatilities on Soc Centrale and Fonciere Lyonnaise 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 Soc Centrale with a short position of Fonciere Lyonnaise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soc Centrale and Fonciere Lyonnaise.
Diversification Opportunities for Soc Centrale and Fonciere Lyonnaise
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Soc and Fonciere is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Soc Centrale Bois and Fonciere Lyonnaise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonciere Lyonnaise and Soc Centrale 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 Soc Centrale Bois are associated (or correlated) with Fonciere Lyonnaise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonciere Lyonnaise has no effect on the direction of Soc Centrale i.e., Soc Centrale and Fonciere Lyonnaise go up and down completely randomly.
Pair Corralation between Soc Centrale and Fonciere Lyonnaise
Assuming the 90 days trading horizon Soc Centrale Bois is expected to under-perform the Fonciere Lyonnaise. In addition to that, Soc Centrale is 1.43 times more volatile than Fonciere Lyonnaise. It trades about 0.0 of its total potential returns per unit of risk. Fonciere Lyonnaise is currently generating about 0.0 per unit of volatility. If you would invest 7,763 in Fonciere Lyonnaise on September 12, 2024 and sell it today you would lose (463.00) from holding Fonciere Lyonnaise or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Soc Centrale Bois vs. Fonciere Lyonnaise
Performance |
| Timeline |
| Soc Centrale Bois |
| Fonciere Lyonnaise |
Soc Centrale and Fonciere Lyonnaise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soc Centrale and Fonciere Lyonnaise
The main advantage of trading using opposite Soc Centrale and Fonciere Lyonnaise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soc Centrale position performs unexpectedly, Fonciere Lyonnaise 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 Lyonnaise will offset losses from the drop in Fonciere Lyonnaise's long position.| Soc Centrale vs. Immobiliere Dassault SA | Soc Centrale vs. Fonciere Inea | Soc Centrale vs. Selectirente | Soc Centrale vs. Groupe Partouche SA |
| Fonciere Lyonnaise vs. Gecina SA | Fonciere Lyonnaise vs. Icade SA | Fonciere Lyonnaise vs. Altarea SCA | Fonciere Lyonnaise vs. Mercialys 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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