Correlation Between Groupe Pizzorno and Air France
Can any of the company-specific risk be diversified away by investing in both Groupe Pizzorno and Air France 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 Groupe Pizzorno and Air France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Pizzorno Environnement and Air France KLM SA, you can compare the effects of market volatilities on Groupe Pizzorno and Air France 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 Groupe Pizzorno with a short position of Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Pizzorno and Air France.
Diversification Opportunities for Groupe Pizzorno and Air France
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Groupe and Air is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Pizzorno Environnement and Air France KLM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air France KLM and Groupe Pizzorno 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 Groupe Pizzorno Environnement are associated (or correlated) with Air France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air France KLM has no effect on the direction of Groupe Pizzorno i.e., Groupe Pizzorno and Air France go up and down completely randomly.
Pair Corralation between Groupe Pizzorno and Air France
Assuming the 90 days trading horizon Groupe Pizzorno Environnement is expected to generate 0.92 times more return on investment than Air France. However, Groupe Pizzorno Environnement is 1.08 times less risky than Air France. It trades about 0.08 of its potential returns per unit of risk. Air France KLM SA is currently generating about -0.06 per unit of risk. If you would invest 4,243 in Groupe Pizzorno Environnement on August 26, 2024 and sell it today you would earn a total of 3,777 from holding Groupe Pizzorno Environnement or generate 89.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Pizzorno Environnement vs. Air France KLM SA
Performance |
| Timeline |
| Groupe Pizzorno Envi |
| Air France KLM |
Groupe Pizzorno and Air France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Pizzorno and Air France
The main advantage of trading using opposite Groupe Pizzorno and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Pizzorno position performs unexpectedly, Air France 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 Air France will offset losses from the drop in Air France's long position.| Groupe Pizzorno vs. Seche Environnem | Groupe Pizzorno vs. Derichebourg | Groupe Pizzorno vs. Assystem SA | Groupe Pizzorno vs. ABC arbitrage SA |
| Air France vs. Manitou BF SA | Air France vs. Ossiam Minimum Variance | Air France vs. Granite 3x LVMH | Air France vs. 21Shares Polkadot ETP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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