Correlation Between Groupe Partouche and Fonciere Lyonnaise
Can any of the company-specific risk be diversified away by investing in both Groupe Partouche and Fonciere Lyonnaise 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 Groupe Partouche and Fonciere Lyonnaise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe Partouche SA and Fonciere Lyonnaise, you can compare the effects of market volatilities on Groupe Partouche and Fonciere Lyonnaise 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 Groupe Partouche with a short position of Fonciere Lyonnaise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe Partouche and Fonciere Lyonnaise.
Diversification Opportunities for Groupe Partouche and Fonciere Lyonnaise
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Groupe and Fonciere is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Fonciere Lyonnaise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonciere Lyonnaise and Groupe Partouche 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 Groupe Partouche SA are associated (or correlated) with Fonciere Lyonnaise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonciere Lyonnaise has no effect on the direction of Groupe Partouche i.e., Groupe Partouche and Fonciere Lyonnaise go up and down completely randomly.
Pair Corralation between Groupe Partouche and Fonciere Lyonnaise
Assuming the 90 days trading horizon Groupe Partouche is expected to generate 592.0 times less return on investment than Fonciere Lyonnaise. But when comparing it to its historical volatility, Groupe Partouche SA is 4.56 times less risky than Fonciere Lyonnaise. It trades about 0.0 of its potential returns per unit of risk. Fonciere Lyonnaise is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 6,400 in Fonciere Lyonnaise on September 3, 2024 and sell it today you would earn a total of 900.00 from holding Fonciere Lyonnaise or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Groupe Partouche SA vs. Fonciere Lyonnaise
Performance |
| Timeline |
| Groupe Partouche |
| Fonciere Lyonnaise |
Groupe Partouche and Fonciere Lyonnaise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe Partouche and Fonciere Lyonnaise
The main advantage of trading using opposite Groupe Partouche and Fonciere Lyonnaise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche position performs unexpectedly, Fonciere Lyonnaise 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 Fonciere Lyonnaise will offset losses from the drop in Fonciere Lyonnaise's long position.| Groupe Partouche vs. Fonciere Inea | Groupe Partouche vs. Immobiliere Dassault SA | Groupe Partouche vs. Societe de la | Groupe Partouche vs. Patrimoine et Commerce |
| Fonciere Lyonnaise vs. Gecina SA | Fonciere Lyonnaise vs. Icade SA | Fonciere Lyonnaise vs. Altarea SCA | Fonciere Lyonnaise vs. Mercialys 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |