Correlation Between Fonciere Lyonnaise and Frey SA
Can any of the company-specific risk be diversified away by investing in both Fonciere Lyonnaise and Frey 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 Frey 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 Frey SA, you can compare the effects of market volatilities on Fonciere Lyonnaise and Frey 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 Frey SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonciere Lyonnaise and Frey SA.
Diversification Opportunities for Fonciere Lyonnaise and Frey SA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fonciere and Frey is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Fonciere Lyonnaise and Frey SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frey 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 Frey SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frey SA has no effect on the direction of Fonciere Lyonnaise i.e., Fonciere Lyonnaise and Frey SA go up and down completely randomly.
Pair Corralation between Fonciere Lyonnaise and Frey SA
Assuming the 90 days trading horizon Fonciere Lyonnaise is expected to generate 1.23 times more return on investment than Frey SA. However, Fonciere Lyonnaise is 1.23 times more volatile than Frey SA. It trades about 0.0 of its potential returns per unit of risk. Frey SA is currently generating about -0.01 per unit of risk. If you would invest 7,507 in Fonciere Lyonnaise on August 28, 2024 and sell it today you would lose (207.00) from holding Fonciere Lyonnaise or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fonciere Lyonnaise vs. Frey SA
Performance |
| Timeline |
| Fonciere Lyonnaise |
| Frey SA |
Fonciere Lyonnaise and Frey SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonciere Lyonnaise and Frey SA
The main advantage of trading using opposite Fonciere Lyonnaise and Frey SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonciere Lyonnaise position performs unexpectedly, Frey 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 Frey SA will offset losses from the drop in Frey SA's long position.| Fonciere Lyonnaise vs. Gecina SA | Fonciere Lyonnaise vs. Icade SA | Fonciere Lyonnaise vs. Altarea SCA | Fonciere Lyonnaise vs. Mercialys SA |
| Frey SA vs. Fonciere Inea | Frey SA vs. Fonciere Lyonnaise | Frey SA vs. Immobiliere Dassault SA | Frey SA vs. Argan 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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