Correlation Between FNP Technologies and Affluent Medical
Can any of the company-specific risk be diversified away by investing in both FNP Technologies and Affluent Medical 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 Affluent Medical 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 Affluent Medical SAS, you can compare the effects of market volatilities on FNP Technologies and Affluent Medical 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 Affluent Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Affluent Medical.
Diversification Opportunities for FNP Technologies and Affluent Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FNP and Affluent is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA and Affluent Medical SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affluent Medical SAS 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 Affluent Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affluent Medical SAS has no effect on the direction of FNP Technologies i.e., FNP Technologies and Affluent Medical go up and down completely randomly.
Pair Corralation between FNP Technologies and Affluent Medical
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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. Affluent Medical SAS
Performance |
| Timeline |
| FNP Technologies |
| Affluent Medical SAS |
FNP Technologies and Affluent Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Affluent Medical
The main advantage of trading using opposite FNP Technologies and Affluent Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies position performs unexpectedly, Affluent Medical 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 Affluent Medical will offset losses from the drop in Affluent Medical's long position.| FNP Technologies vs. Marie Brizard Wine | FNP Technologies vs. Invibes Advertising NV | FNP Technologies vs. ZCCM Investments Holdings | FNP Technologies vs. Technip Energies BV |
| Affluent Medical vs. Hydrogene De France | Affluent Medical vs. Manitou BF SA | Affluent Medical vs. Ossiam Minimum Variance | Affluent Medical 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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