Correlation Between Safran SA and FDM Group
Can any of the company-specific risk be diversified away by investing in both Safran SA and FDM Group 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 Safran SA and FDM Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safran SA and FDM Group Holdings, you can compare the effects of market volatilities on Safran SA and FDM Group 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 Safran SA with a short position of FDM Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safran SA and FDM Group.
Diversification Opportunities for Safran SA and FDM Group
Very good diversification
The 3 months correlation between Safran and FDM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Safran SA and FDM Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDM Group Holdings and Safran SA 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 Safran SA are associated (or correlated) with FDM Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDM Group Holdings has no effect on the direction of Safran SA i.e., Safran SA and FDM Group go up and down completely randomly.
Pair Corralation between Safran SA and FDM Group
Assuming the 90 days trading horizon Safran SA is expected to generate 0.25 times more return on investment than FDM Group. However, Safran SA is 3.96 times less risky than FDM Group. It trades about 0.09 of its potential returns per unit of risk. FDM Group Holdings is currently generating about -0.1 per unit of risk. If you would invest 28,320 in Safran SA on July 19, 2025 and sell it today you would earn a total of 1,905 from holding Safran SA or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safran SA vs. FDM Group Holdings
Performance |
| Timeline |
| Safran SA |
| FDM Group Holdings |
Safran SA and FDM Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safran SA and FDM Group
The main advantage of trading using opposite Safran SA and FDM Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safran SA position performs unexpectedly, FDM Group 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 FDM Group will offset losses from the drop in FDM Group's long position.| Safran SA vs. Toyota Motor Corp | Safran SA vs. SoftBank Group Corp | Safran SA vs. Intuitive Surgical | Safran SA vs. CBRE Group Cl |
| FDM Group vs. Samsung Electronics Co | FDM Group vs. Samsung Electronics Co | FDM Group vs. Samsung Electronics Co | FDM Group vs. Toyota Motor Corp |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |