Correlation Between Antin IP and Tikehau Capital
Can any of the company-specific risk be diversified away by investing in both Antin IP and Tikehau Capital 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 Antin IP and Tikehau Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antin IP SA and Tikehau Capital, you can compare the effects of market volatilities on Antin IP and Tikehau Capital 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 Antin IP with a short position of Tikehau Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antin IP and Tikehau Capital.
Diversification Opportunities for Antin IP and Tikehau Capital
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Antin and Tikehau is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Antin IP SA and Tikehau Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikehau Capital and Antin IP 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 Antin IP SA are associated (or correlated) with Tikehau Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikehau Capital has no effect on the direction of Antin IP i.e., Antin IP and Tikehau Capital go up and down completely randomly.
Pair Corralation between Antin IP and Tikehau Capital
Assuming the 90 days trading horizon Antin IP SA is expected to under-perform the Tikehau Capital. In addition to that, Antin IP is 2.0 times more volatile than Tikehau Capital. It trades about -0.04 of its total potential returns per unit of risk. Tikehau Capital is currently generating about -0.01 per unit of volatility. If you would invest 2,341 in Tikehau Capital on August 30, 2024 and sell it today you would lose (271.00) from holding Tikehau Capital or give up 11.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antin IP SA vs. Tikehau Capital
Performance |
| Timeline |
| Antin IP SA |
| Tikehau Capital |
Antin IP and Tikehau Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antin IP and Tikehau Capital
The main advantage of trading using opposite Antin IP and Tikehau Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antin IP position performs unexpectedly, Tikehau Capital 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 Tikehau Capital will offset losses from the drop in Tikehau Capital's long position.| Antin IP vs. CBO Territoria SA | Antin IP vs. Rubis SCA | Antin IP vs. Nexity | Antin IP vs. Gaztransport Technigaz SAS |
| Tikehau Capital vs. Eurazeo | Tikehau Capital vs. Wendel | Tikehau Capital vs. SPIE SA | Tikehau Capital vs. Amundi SA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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