Correlation Between FAIR ISAAC and LAir Liquide
Can any of the company-specific risk be diversified away by investing in both FAIR ISAAC and LAir Liquide 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 FAIR ISAAC and LAir Liquide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAIR ISAAC and LAir Liquide SA, you can compare the effects of market volatilities on FAIR ISAAC and LAir Liquide 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 FAIR ISAAC with a short position of LAir Liquide. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAIR ISAAC and LAir Liquide.
Diversification Opportunities for FAIR ISAAC and LAir Liquide
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FAIR and LAir is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding FAIR ISAAC and LAir Liquide SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAir Liquide SA and FAIR ISAAC 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 FAIR ISAAC are associated (or correlated) with LAir Liquide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAir Liquide SA has no effect on the direction of FAIR ISAAC i.e., FAIR ISAAC and LAir Liquide go up and down completely randomly.
Pair Corralation between FAIR ISAAC and LAir Liquide
Assuming the 90 days trading horizon FAIR ISAAC is expected to generate 3.15 times more return on investment than LAir Liquide. However, FAIR ISAAC is 3.15 times more volatile than LAir Liquide SA. It trades about 0.03 of its potential returns per unit of risk. LAir Liquide SA is currently generating about 0.01 per unit of risk. If you would invest 132,200 in FAIR ISAAC on July 20, 2025 and sell it today you would earn a total of 5,000 from holding FAIR ISAAC or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAIR ISAAC vs. LAir Liquide SA
Performance |
| Timeline |
| FAIR ISAAC |
| LAir Liquide SA |
FAIR ISAAC and LAir Liquide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAIR ISAAC and LAir Liquide
The main advantage of trading using opposite FAIR ISAAC and LAir Liquide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAIR ISAAC position performs unexpectedly, LAir Liquide 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 LAir Liquide will offset losses from the drop in LAir Liquide's long position.| FAIR ISAAC vs. TT Electronics PLC | FAIR ISAAC vs. Richardson Electronics | FAIR ISAAC vs. MOUNT GIBSON IRON | FAIR ISAAC vs. Hana Microelectronics PCL |
| LAir Liquide vs. GRIFFIN MINING LTD | LAir Liquide vs. Yanzhou Coal Mining | LAir Liquide vs. Zoom Video Communications | LAir Liquide vs. COMTECH TELECOMM |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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