Correlation Between Transgene and Fonciere Inea
Can any of the company-specific risk be diversified away by investing in both Transgene and Fonciere Inea 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 Transgene and Fonciere Inea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transgene SA and Fonciere Inea, you can compare the effects of market volatilities on Transgene and Fonciere Inea 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 Transgene with a short position of Fonciere Inea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transgene and Fonciere Inea.
Diversification Opportunities for Transgene and Fonciere Inea
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Transgene and Fonciere is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Transgene SA and Fonciere Inea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonciere Inea and Transgene 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 Transgene SA are associated (or correlated) with Fonciere Inea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonciere Inea has no effect on the direction of Transgene i.e., Transgene and Fonciere Inea go up and down completely randomly.
Pair Corralation between Transgene and Fonciere Inea
If you would invest (100.00) in Transgene SA on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Transgene SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Transgene SA vs. Fonciere Inea
Performance |
| Timeline |
| Transgene SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fonciere Inea |
Transgene and Fonciere Inea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transgene and Fonciere Inea
The main advantage of trading using opposite Transgene and Fonciere Inea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transgene position performs unexpectedly, Fonciere Inea 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 Inea will offset losses from the drop in Fonciere Inea's long position.| Transgene vs. Innate Pharma | Transgene vs. Nanobiotix SA | Transgene vs. Genfit | Transgene vs. AB Science SA |
| Fonciere Inea vs. Fonciere Lyonnaise | Fonciere Inea vs. Immobiliere Dassault SA | Fonciere Inea vs. Frey 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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