Correlation Between Innelec Multimedia and La Francaise

Can any of the company-specific risk be diversified away by investing in both Innelec Multimedia and La Francaise 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 Innelec Multimedia and La Francaise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Innelec Multimedia and La Francaise Des, you can compare the effects of market volatilities on Innelec Multimedia and La Francaise 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 Innelec Multimedia with a short position of La Francaise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innelec Multimedia and La Francaise.

Diversification Opportunities for Innelec Multimedia and La Francaise

0.0

Correlation Coefficient

Innelec Multimedia  La Francaise

Pay attention - limited upside

The 3 months correlation between Innelec and FDJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Innelec Multimedia and La Francaise Des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Francaise Des and Innelec Multimedia 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 Innelec Multimedia are associated (or correlated) with La Francaise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Francaise Des has no effect on the direction of Innelec Multimedia i.e., Innelec Multimedia and La Francaise go up and down completely randomly.

Pair Corralation between Innelec Multimedia and La Francaise

If you would invest  266.00  in Innelec Multimedia on October 10, 2024 and sell it today you would earn a total of  107.00  from holding Innelec Multimedia or generate 40.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Innelec Multimedia  vs.  La Francaise Des

Innelec Multimedia

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Innelec Multimedia are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Innelec Multimedia may actually be approaching a critical reversion point that can send shares even higher in February 2025.

La Francaise Des

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days La Francaise Des has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking indicators, La Francaise is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Innelec Multimedia and La Francaise

The main advantage of trading using opposite Innelec Multimedia and La Francaise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innelec Multimedia position performs unexpectedly, La Francaise 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 La Francaise will offset losses from the drop in La Francaise's long position.

The idea behind Innelec Multimedia and La Francaise Des pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.