Correlation Between Figeac Aero and Lumibird
Can any of the company-specific risk be diversified away by investing in both Figeac Aero and Lumibird 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 Lumibird 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 Lumibird SA, you can compare the effects of market volatilities on Figeac Aero and Lumibird 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 Lumibird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figeac Aero and Lumibird.
Diversification Opportunities for Figeac Aero and Lumibird
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Figeac and Lumibird is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Figeac Aero SA and Lumibird SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumibird 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 Lumibird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumibird SA has no effect on the direction of Figeac Aero i.e., Figeac Aero and Lumibird go up and down completely randomly.
Pair Corralation between Figeac Aero and Lumibird
Assuming the 90 days trading horizon Figeac Aero SA is expected to generate 0.83 times more return on investment than Lumibird. However, Figeac Aero SA is 1.21 times less risky than Lumibird. It trades about 0.06 of its potential returns per unit of risk. Lumibird SA is currently generating about 0.01 per unit of risk. If you would invest 572.00 in Figeac Aero SA on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Figeac Aero SA or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figeac Aero SA vs. Lumibird SA
Performance |
| Timeline |
| Figeac Aero SA |
| Lumibird SA |
Figeac Aero and Lumibird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figeac Aero and Lumibird
The main advantage of trading using opposite Figeac Aero and Lumibird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figeac Aero position performs unexpectedly, Lumibird 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 Lumibird will offset losses from the drop in Lumibird's long position.| Figeac Aero vs. Prodways Group SA | Figeac Aero vs. Claranova SE | Figeac Aero vs. DBV Technologies SA | Figeac Aero vs. Manitou BF SA |
| Lumibird vs. Sartorius Stedim Biotech | Lumibird vs. Lectra SA | Lumibird vs. Teleperformance SE | Lumibird vs. Trigano 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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