Correlation Between Bnteau SA and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Bnteau SA 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 Bnteau SA and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bnteau SA and Trigano SA, you can compare the effects of market volatilities on Bnteau SA 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 Bnteau SA with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bnteau SA and Trigano SA.
Diversification Opportunities for Bnteau SA and Trigano SA
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bnteau and Trigano is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bnteau SA and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Bnteau 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 Bnteau 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 Bnteau SA i.e., Bnteau SA and Trigano SA go up and down completely randomly.
Pair Corralation between Bnteau SA and Trigano SA
Assuming the 90 days trading horizon Bnteau SA is expected to generate 1.24 times less return on investment than Trigano SA. In addition to that, Bnteau SA is 1.04 times more volatile than Trigano SA. It trades about 0.16 of its total potential returns per unit of risk. Trigano SA is currently generating about 0.21 per unit of volatility. If you would invest 12,300 in Trigano SA on November 4, 2024 and sell it today you would earn a total of 930.00 from holding Trigano SA or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bnteau SA vs. Trigano SA
Performance |
| Timeline |
| Bnteau SA |
| Trigano SA |
Bnteau SA and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bnteau SA and Trigano SA
The main advantage of trading using opposite Bnteau SA and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bnteau SA 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.| Bnteau SA vs. Trigano SA | Bnteau SA vs. Bonduelle SCA | Bnteau SA vs. Socit BIC SA | Bnteau SA vs. Imerys SA |
| Trigano SA vs. CMG Cleantech SA | Trigano SA vs. ZCCM Investments Holdings | Trigano SA vs. Fill Up Media | Trigano SA vs. Ubisoft Entertainment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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