Correlation Between VIEL Cie and Figeac Aero

Can any of the company-specific risk be diversified away by investing in both VIEL Cie and Figeac Aero 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 VIEL Cie and Figeac Aero into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VIEL Cie socit and Figeac Aero SA, you can compare the effects of market volatilities on VIEL Cie and Figeac Aero 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 VIEL Cie with a short position of Figeac Aero. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIEL Cie and Figeac Aero.

Diversification Opportunities for VIEL Cie and Figeac Aero

0.0

Correlation Coefficient

VIEL Cie  Figeac Aero

Pay attention - limited upside

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

Pair Corralation between VIEL Cie and Figeac Aero

If you would invest  561.00  in VIEL Cie socit on October 5, 2024 and sell it today you would earn a total of  669.00  from holding VIEL Cie socit or generate 119.25% return on investment over 90 days.

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

VIEL Cie socit  vs.  Figeac Aero SA

VIEL Cie socit

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIEL Cie socit are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, VIEL Cie sustained solid returns over the last few months and may actually be approaching a breakup point.

Figeac Aero SA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Figeac Aero SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Figeac Aero may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with VIEL Cie and Figeac Aero

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

The idea behind VIEL Cie socit and Figeac Aero SA 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.