Correlation Between FNP Technologies and Kerlink SAS
Can any of the company-specific risk be diversified away by investing in both FNP Technologies and Kerlink SAS 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 Kerlink SAS 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 Kerlink SAS, you can compare the effects of market volatilities on FNP Technologies and Kerlink SAS 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 Kerlink SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Kerlink SAS.
Diversification Opportunities for FNP Technologies and Kerlink SAS
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between FNP and Kerlink is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA and Kerlink SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerlink 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 Kerlink SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerlink SAS has no effect on the direction of FNP Technologies i.e., FNP Technologies and Kerlink SAS go up and down completely randomly.
Pair Corralation between FNP Technologies and Kerlink SAS
If you would invest 57.00 in Kerlink SAS on September 12, 2024 and sell it today you would lose (1.00) from holding Kerlink SAS or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FNP Technologies SA vs. Kerlink SAS
Performance |
| Timeline |
| FNP Technologies |
| Kerlink SAS |
FNP Technologies and Kerlink SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Kerlink SAS
The main advantage of trading using opposite FNP Technologies and Kerlink SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies position performs unexpectedly, Kerlink SAS 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 Kerlink SAS will offset losses from the drop in Kerlink SAS's long position.| FNP Technologies vs. Blockchain Group SA | FNP Technologies vs. Energisme | FNP Technologies vs. Manitou BF SA | FNP Technologies vs. Ossiam Minimum Variance |
| Kerlink SAS vs. Claranova SE | Kerlink SAS vs. Balyo SA | Kerlink SAS vs. DBT SA | Kerlink SAS vs. Wallix Group SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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