Correlation Between Bonduelle SCA and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Bonduelle SCA 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 Bonduelle SCA and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonduelle SCA and Trigano SA, you can compare the effects of market volatilities on Bonduelle SCA 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 Bonduelle SCA with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonduelle SCA and Trigano SA.
Diversification Opportunities for Bonduelle SCA and Trigano SA
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bonduelle and Trigano is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bonduelle SCA and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Bonduelle SCA 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 Bonduelle SCA 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 Bonduelle SCA i.e., Bonduelle SCA and Trigano SA go up and down completely randomly.
Pair Corralation between Bonduelle SCA and Trigano SA
Assuming the 90 days trading horizon Bonduelle SCA is expected to generate 0.67 times more return on investment than Trigano SA. However, Bonduelle SCA is 1.48 times less risky than Trigano SA. It trades about -0.03 of its potential returns per unit of risk. Trigano SA is currently generating about -0.02 per unit of risk. If you would invest 655.00 in Bonduelle SCA on August 25, 2024 and sell it today you would lose (5.00) from holding Bonduelle SCA or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonduelle SCA vs. Trigano SA
Performance |
| Timeline |
| Bonduelle SCA |
| Trigano SA |
Bonduelle SCA and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonduelle SCA and Trigano SA
The main advantage of trading using opposite Bonduelle SCA and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonduelle SCA 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.| Bonduelle SCA vs. LOreal SA | Bonduelle SCA vs. Sanofi SA | Bonduelle SCA vs. Air Liquide SA | Bonduelle SCA vs. AXA SA |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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