Correlation Between Groupe LDLC and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Groupe LDLC and Trigano SA 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 Groupe LDLC and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe LDLC SA and Trigano SA, you can compare the effects of market volatilities on Groupe LDLC and Trigano SA 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 Groupe LDLC with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe LDLC and Trigano SA.
Diversification Opportunities for Groupe LDLC and Trigano SA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Groupe and Trigano is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Groupe LDLC SA and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Groupe LDLC 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 Groupe LDLC SA are associated (or correlated) with Trigano SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trigano SA has no effect on the direction of Groupe LDLC i.e., Groupe LDLC and Trigano SA go up and down completely randomly.
Pair Corralation between Groupe LDLC and Trigano SA
Assuming the 90 days trading horizon Groupe LDLC SA is expected to under-perform the Trigano SA. In addition to that, Groupe LDLC is 1.31 times more volatile than Trigano SA. It trades about -0.1 of its total potential returns per unit of risk. Trigano SA is currently generating about -0.04 per unit of volatility. If you would invest 13,691 in Trigano SA on September 1, 2024 and sell it today you would lose (1,781) from holding Trigano SA or give up 13.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Groupe LDLC SA vs. Trigano SA
Performance |
| Timeline |
| Groupe LDLC SA |
| Trigano SA |
Groupe LDLC and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe LDLC and Trigano SA
The main advantage of trading using opposite Groupe LDLC and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe LDLC position performs unexpectedly, Trigano SA 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 Trigano SA will offset losses from the drop in Trigano SA's long position.| Groupe LDLC vs. Piscines Desjoyaux SA | Groupe LDLC vs. Claranova SE | Groupe LDLC vs. Trigano SA | Groupe LDLC vs. Chargeurs SA |
| Trigano SA vs. Mediantechn | Trigano SA vs. Gaztransport Technigaz SAS | Trigano SA vs. DONTNOD Entertainment SA | Trigano SA vs. Union Technologies Informatique |
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 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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |