Correlation Between Guandao Puer and Air France
Can any of the company-specific risk be diversified away by investing in both Guandao Puer 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 Guandao Puer and Air France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guandao Puer Investment and Air France KLM SA, you can compare the effects of market volatilities on Guandao Puer 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 Guandao Puer with a short position of Air France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guandao Puer and Air France.
Diversification Opportunities for Guandao Puer and Air France
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guandao and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guandao Puer Investment 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 Guandao Puer 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 Guandao Puer Investment 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 Guandao Puer i.e., Guandao Puer and Air France go up and down completely randomly.
Pair Corralation between Guandao Puer and Air France
If you would invest 45.00 in Guandao Puer Investment on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Guandao Puer Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.85% |
| Values | Daily Returns |
Guandao Puer Investment vs. Air France KLM SA
Performance |
| Timeline |
| Guandao Puer Investment |
| Air France KLM |
Guandao Puer and Air France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guandao Puer and Air France
The main advantage of trading using opposite Guandao Puer and Air France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guandao Puer 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.| Guandao Puer vs. Manitou BF SA | Guandao Puer vs. Ossiam Minimum Variance | Guandao Puer vs. Ekinops SA | Guandao Puer vs. Orapi SA |
| Air France vs. Covivio Hotels | Air France vs. Invibes Advertising NV | Air France vs. Broadpeak SA | Air France vs. Union Technologies Informatique |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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