Correlation Between Fonciere Lyonnaise and Artea SA
Can any of the company-specific risk be diversified away by investing in both Fonciere Lyonnaise and Artea 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 Fonciere Lyonnaise and Artea SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonciere Lyonnaise and Artea SA, you can compare the effects of market volatilities on Fonciere Lyonnaise and Artea 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 Fonciere Lyonnaise with a short position of Artea SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonciere Lyonnaise and Artea SA.
Diversification Opportunities for Fonciere Lyonnaise and Artea SA
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fonciere and Artea is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fonciere Lyonnaise and Artea SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artea SA and Fonciere Lyonnaise 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 Fonciere Lyonnaise are associated (or correlated) with Artea SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artea SA has no effect on the direction of Fonciere Lyonnaise i.e., Fonciere Lyonnaise and Artea SA go up and down completely randomly.
Pair Corralation between Fonciere Lyonnaise and Artea SA
Assuming the 90 days trading horizon Fonciere Lyonnaise is expected to generate 0.6 times more return on investment than Artea SA. However, Fonciere Lyonnaise is 1.68 times less risky than Artea SA. It trades about 0.06 of its potential returns per unit of risk. Artea SA is currently generating about -0.1 per unit of risk. If you would invest 6,720 in Fonciere Lyonnaise on August 29, 2024 and sell it today you would earn a total of 560.00 from holding Fonciere Lyonnaise or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonciere Lyonnaise vs. Artea SA
Performance |
| Timeline |
| Fonciere Lyonnaise |
| Artea SA |
Fonciere Lyonnaise and Artea SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonciere Lyonnaise and Artea SA
The main advantage of trading using opposite Fonciere Lyonnaise and Artea SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonciere Lyonnaise position performs unexpectedly, Artea 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 Artea SA will offset losses from the drop in Artea SA's long position.| Fonciere Lyonnaise vs. Gecina SA | Fonciere Lyonnaise vs. Icade SA | Fonciere Lyonnaise vs. Altarea SCA | Fonciere Lyonnaise vs. Mercialys SA |
| Artea SA vs. Bourse Direct SA | Artea SA vs. CBO Territoria SA | Artea SA vs. Altareit | Artea SA vs. Courtois 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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