Correlation Between Figeac Aero and Voyageurs
Can any of the company-specific risk be diversified away by investing in both Figeac Aero and Voyageurs 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 Figeac Aero and Voyageurs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figeac Aero SA and Voyageurs du Monde, you can compare the effects of market volatilities on Figeac Aero and Voyageurs 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 Figeac Aero with a short position of Voyageurs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figeac Aero and Voyageurs.
Diversification Opportunities for Figeac Aero and Voyageurs
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Figeac and Voyageurs is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Figeac Aero SA and Voyageurs du Monde in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyageurs du Monde and Figeac Aero 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 Figeac Aero SA are associated (or correlated) with Voyageurs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyageurs du Monde has no effect on the direction of Figeac Aero i.e., Figeac Aero and Voyageurs go up and down completely randomly.
Pair Corralation between Figeac Aero and Voyageurs
Assuming the 90 days trading horizon Figeac Aero is expected to generate 5.07 times less return on investment than Voyageurs. But when comparing it to its historical volatility, Figeac Aero SA is 1.2 times less risky than Voyageurs. It trades about 0.05 of its potential returns per unit of risk. Voyageurs du Monde is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 12,680 in Voyageurs du Monde on September 25, 2024 and sell it today you would earn a total of 1,340 from holding Voyageurs du Monde or generate 10.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Figeac Aero SA vs. Voyageurs du Monde
Performance |
Timeline |
Figeac Aero SA |
Voyageurs du Monde |
Figeac Aero and Voyageurs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Figeac Aero and Voyageurs
The main advantage of trading using opposite Figeac Aero and Voyageurs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figeac Aero position performs unexpectedly, Voyageurs 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 Voyageurs will offset losses from the drop in Voyageurs' long position.Figeac Aero vs. Thermador Groupe SA | Figeac Aero vs. Rubis SCA | Figeac Aero vs. Vicat SA | Figeac Aero vs. Trigano SA |
Voyageurs vs. ATEME SA | Voyageurs vs. Figeac Aero SA | Voyageurs vs. Chargeurs SA | Voyageurs vs. Xilam Animation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |