Correlation Between Fonciere Lyonnaise and Covivio Hotels
Can any of the company-specific risk be diversified away by investing in both Fonciere Lyonnaise and Covivio Hotels 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 Covivio Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonciere Lyonnaise and Covivio Hotels, you can compare the effects of market volatilities on Fonciere Lyonnaise and Covivio Hotels 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 Covivio Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonciere Lyonnaise and Covivio Hotels.
Diversification Opportunities for Fonciere Lyonnaise and Covivio Hotels
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fonciere and Covivio is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fonciere Lyonnaise and Covivio Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covivio Hotels 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 Covivio Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covivio Hotels has no effect on the direction of Fonciere Lyonnaise i.e., Fonciere Lyonnaise and Covivio Hotels go up and down completely randomly.
Pair Corralation between Fonciere Lyonnaise and Covivio Hotels
Assuming the 90 days trading horizon Fonciere Lyonnaise is expected to under-perform the Covivio Hotels. In addition to that, Fonciere Lyonnaise is 1.04 times more volatile than Covivio Hotels. It trades about 0.0 of its total potential returns per unit of risk. Covivio Hotels is currently generating about 0.07 per unit of volatility. If you would invest 1,283 in Covivio Hotels on August 30, 2024 and sell it today you would earn a total of 572.00 from holding Covivio Hotels or generate 44.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonciere Lyonnaise vs. Covivio Hotels
Performance |
| Timeline |
| Fonciere Lyonnaise |
| Covivio Hotels |
Fonciere Lyonnaise and Covivio Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonciere Lyonnaise and Covivio Hotels
The main advantage of trading using opposite Fonciere Lyonnaise and Covivio Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonciere Lyonnaise position performs unexpectedly, Covivio Hotels 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 Covivio Hotels will offset losses from the drop in Covivio Hotels' long position.| Fonciere Lyonnaise vs. Gecina SA | Fonciere Lyonnaise vs. Icade SA | Fonciere Lyonnaise vs. Altarea SCA | Fonciere Lyonnaise vs. Mercialys SA |
| Covivio Hotels vs. Covivio SA | Covivio Hotels vs. Altarea SCA | Covivio Hotels vs. Icade SA | Covivio Hotels vs. Gecina 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |