Correlation Between Kaufman Et and FNP Technologies
Can any of the company-specific risk be diversified away by investing in both Kaufman Et 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 Kaufman Et and FNP Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Et Broad and FNP Technologies SA, you can compare the effects of market volatilities on Kaufman Et 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 Kaufman Et with a short position of FNP Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Et and FNP Technologies.
Diversification Opportunities for Kaufman Et and FNP Technologies
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaufman and FNP is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Et Broad and FNP Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNP Technologies and Kaufman Et 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 Kaufman Et Broad 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 Kaufman Et i.e., Kaufman Et and FNP Technologies go up and down completely randomly.
Pair Corralation between Kaufman Et and FNP Technologies
If you would invest 6.00 in FNP Technologies SA on September 19, 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 |
Kaufman Et Broad vs. FNP Technologies SA
Performance |
| Timeline |
| Kaufman Et Broad |
| FNP Technologies |
Kaufman Et and FNP Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Et and FNP Technologies
The main advantage of trading using opposite Kaufman Et and FNP Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Et 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.The idea behind Kaufman Et Broad and FNP Technologies SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| FNP Technologies vs. Energisme | FNP Technologies vs. Manitou BF SA | FNP Technologies vs. Ossiam Minimum Variance | FNP Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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