Correlation Between Boiron SA and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Boiron 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 Boiron 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 Boiron SA and Trigano SA, you can compare the effects of market volatilities on Boiron 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 Boiron SA with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boiron SA and Trigano SA.
Diversification Opportunities for Boiron SA and Trigano SA
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boiron and Trigano is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Boiron SA and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Boiron 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 Boiron 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 Boiron SA i.e., Boiron SA and Trigano SA go up and down completely randomly.
Pair Corralation between Boiron SA and Trigano SA
Assuming the 90 days trading horizon Boiron SA is expected to under-perform the Trigano SA. In addition to that, Boiron SA is 1.07 times more volatile than Trigano SA. It trades about -0.01 of its total potential returns per unit of risk. Trigano SA is currently generating about 0.01 per unit of volatility. If you would invest 11,730 in Trigano SA on September 1, 2024 and sell it today you would earn a total of 180.00 from holding Trigano SA or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boiron SA vs. Trigano SA
Performance |
| Timeline |
| Boiron SA |
| Trigano SA |
Boiron SA and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boiron SA and Trigano SA
The main advantage of trading using opposite Boiron SA and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boiron 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.| Boiron SA vs. Virbac SA | Boiron SA vs. Bonduelle SCA | Boiron SA vs. Biomerieux SA | Boiron SA vs. Guerbet S A |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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