Correlation Between FANDIFI TECHNOLOGY and Safran SA
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY and Safran SA 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 FANDIFI TECHNOLOGY and Safran SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and Safran SA, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY and Safran SA 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 FANDIFI TECHNOLOGY with a short position of Safran SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Safran SA.
Diversification Opportunities for FANDIFI TECHNOLOGY and Safran SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Safran is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Safran SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safran SA and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P are associated (or correlated) with Safran SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safran SA has no effect on the direction of FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Safran SA go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Safran SA
If you would invest 21,160 in Safran SA on August 29, 2024 and sell it today you would earn a total of 560.00 from holding Safran SA or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. Safran SA
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Safran SA |
FANDIFI TECHNOLOGY and Safran SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Safran SA
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Safran SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY position performs unexpectedly, Safran SA 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 Safran SA will offset losses from the drop in Safran SA's long position.| FANDIFI TECHNOLOGY vs. CANON MARKETING JP | FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Vastned Retail NV | FANDIFI TECHNOLOGY vs. RETAIL FOOD GROUP |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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