Correlation Between FNP Technologies and Air France
Can any of the company-specific risk be diversified away by investing in both FNP Technologies 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 FNP Technologies and Air France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNP Technologies SA and Air France KLM SA, you can compare the effects of market volatilities on FNP Technologies 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 FNP Technologies with a short position of Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Air France.
Diversification Opportunities for FNP Technologies and Air France
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FNP and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA 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 FNP 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 FNP Technologies SA 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 FNP Technologies i.e., FNP Technologies and Air France go up and down completely randomly.
Pair Corralation between FNP Technologies and Air France
If you would invest 770.00 in Air France KLM SA on November 28, 2024 and sell it today you would earn a total of 89.00 from holding Air France KLM SA or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. Air France KLM SA
Performance |
| Timeline |
| FNP Technologies |
| Air France KLM |
FNP Technologies and Air France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Air France
The main advantage of trading using opposite FNP Technologies and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies 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.| FNP Technologies vs. Fill Up Media | FNP Technologies vs. Innelec Multimedia | FNP Technologies vs. Eutelsat Communications SA | FNP Technologies vs. Diagnostic Medical Systems |
| Air France vs. CMG Cleantech SA | Air France vs. Sidetrade | Air France vs. FNP Technologies SA | Air France vs. Fill Up Media |
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.
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