Correlation Between FNP Technologies and Mauna Kea
Can any of the company-specific risk be diversified away by investing in both FNP Technologies and Mauna Kea 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 Mauna Kea 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 Mauna Kea Technologies, you can compare the effects of market volatilities on FNP Technologies and Mauna Kea 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 Mauna Kea. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNP Technologies and Mauna Kea.
Diversification Opportunities for FNP Technologies and Mauna Kea
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FNP and Mauna is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FNP Technologies SA and Mauna Kea Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mauna Kea Technologies 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 Mauna Kea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mauna Kea Technologies has no effect on the direction of FNP Technologies i.e., FNP Technologies and Mauna Kea go up and down completely randomly.
Pair Corralation between FNP Technologies and Mauna Kea
If you would invest 6.00 in FNP Technologies SA on September 3, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FNP Technologies SA vs. Mauna Kea Technologies
Performance |
| Timeline |
| FNP Technologies |
| Mauna Kea Technologies |
FNP Technologies and Mauna Kea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNP Technologies and Mauna Kea
The main advantage of trading using opposite FNP Technologies and Mauna Kea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNP Technologies position performs unexpectedly, Mauna Kea 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 Mauna Kea will offset losses from the drop in Mauna Kea's long position.| FNP Technologies vs. Linedata Services SA | FNP Technologies vs. Affluent Medical SAS | FNP Technologies vs. Eutelsat Communications SA | FNP Technologies vs. Gaztransport Technigaz SAS |
| Mauna Kea vs. LVMH Mot Hennessy | Mauna Kea vs. LOreal SA | Mauna Kea vs. Hermes International SCA | Mauna Kea vs. Manitou BF 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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