Correlation Between Figeac Aero and Akwel SA
Can any of the company-specific risk be diversified away by investing in both Figeac Aero and Akwel 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 Figeac Aero and Akwel SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figeac Aero SA and Akwel SA, you can compare the effects of market volatilities on Figeac Aero and Akwel 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 Figeac Aero with a short position of Akwel SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figeac Aero and Akwel SA.
Diversification Opportunities for Figeac Aero and Akwel SA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Figeac and Akwel is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Figeac Aero SA and Akwel SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akwel SA and Figeac Aero 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 Figeac Aero SA are associated (or correlated) with Akwel SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akwel SA has no effect on the direction of Figeac Aero i.e., Figeac Aero and Akwel SA go up and down completely randomly.
Pair Corralation between Figeac Aero and Akwel SA
Assuming the 90 days trading horizon Figeac Aero SA is expected to generate 0.86 times more return on investment than Akwel SA. However, Figeac Aero SA is 1.16 times less risky than Akwel SA. It trades about 0.1 of its potential returns per unit of risk. Akwel SA is currently generating about -0.05 per unit of risk. If you would invest 588.00 in Figeac Aero SA on October 17, 2024 and sell it today you would earn a total of 14.00 from holding Figeac Aero SA or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Figeac Aero SA vs. Akwel SA
Performance |
| Timeline |
| Figeac Aero SA |
| Akwel SA |
Figeac Aero and Akwel SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figeac Aero and Akwel SA
The main advantage of trading using opposite Figeac Aero and Akwel SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figeac Aero position performs unexpectedly, Akwel 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 Akwel SA will offset losses from the drop in Akwel SA's long position.The idea behind Figeac Aero SA and Akwel SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Akwel SA vs. Groupe Guillin SA | Akwel SA vs. Plastiques du Val | Akwel SA vs. Jacquet Metal Service | Akwel SA vs. Derichebourg |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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