Correlation Between Galimmo SA and Tikehau Capital
Can any of the company-specific risk be diversified away by investing in both Galimmo SA 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 Galimmo SA and Tikehau Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galimmo SA and Tikehau Capital, you can compare the effects of market volatilities on Galimmo SA 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 Galimmo SA with a short position of Tikehau Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galimmo SA and Tikehau Capital.
Diversification Opportunities for Galimmo SA and Tikehau Capital
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Galimmo and Tikehau is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Galimmo SA and Tikehau Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikehau Capital and Galimmo 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 Galimmo 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 Galimmo SA i.e., Galimmo SA and Tikehau Capital go up and down completely randomly.
Pair Corralation between Galimmo SA and Tikehau Capital
If you would invest 1,483 in Galimmo SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Galimmo SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 17.39% |
| Values | Daily Returns |
Galimmo SA vs. Tikehau Capital
Performance |
| Timeline |
| Galimmo SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Tikehau Capital |
Galimmo SA and Tikehau Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galimmo SA and Tikehau Capital
The main advantage of trading using opposite Galimmo SA and Tikehau Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galimmo SA 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.The idea behind Galimmo SA and Tikehau Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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