Correlation Between Union Technologies and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Union Technologies and FNP Technologies 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 Union Technologies and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Technologies Informatique and FNP Technologies SA, you can compare the effects of market volatilities on Union Technologies and FNP Technologies 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 Union Technologies with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Technologies and FNP Technologies.
Diversification Opportunities for Union Technologies and FNP Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Union and FNP is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Union Technologies Informatiqu and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Union Technologies 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 Union Technologies Informatique are associated (or correlated) with FNP Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNP Technologies has no effect on the direction of Union Technologies i.e., Union Technologies and FNP Technologies go up and down completely randomly.
Pair Corralation between Union Technologies and FNP Technologies
If you would invest 6.00 in FNP Technologies SA on September 13, 2024 and sell it today you would earn a total of 0.00 from holding FNP Technologies SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Technologies Informatiqu vs. FNP Technologies SA
Performance |
| Timeline |
| Union Technologies |
| FNP Technologies |
Union Technologies and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Technologies and FNP Technologies
The main advantage of trading using opposite Union Technologies and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Technologies position performs unexpectedly, FNP Technologies 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 FNP Technologies will offset losses from the drop in FNP Technologies' long position.| Union Technologies vs. Linedata Services SA | Union Technologies vs. Lectra SA | Union Technologies vs. Manitou BF SA | Union Technologies vs. Ossiam Minimum Variance |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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