Correlation Between Compagnie and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Compagnie 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 Compagnie and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Du Mont Blanc and Trigano SA, you can compare the effects of market volatilities on Compagnie 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 Compagnie with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie and Trigano SA.
Diversification Opportunities for Compagnie and Trigano SA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Compagnie and Trigano is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Du Mont Blanc and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Compagnie 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 Compagnie Du Mont Blanc 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 Compagnie i.e., Compagnie and Trigano SA go up and down completely randomly.
Pair Corralation between Compagnie and Trigano SA
Assuming the 90 days trading horizon Compagnie Du Mont Blanc is expected to generate 0.98 times more return on investment than Trigano SA. However, Compagnie Du Mont Blanc is 1.02 times less risky than Trigano SA. It trades about 0.09 of its potential returns per unit of risk. Trigano SA is currently generating about -0.2 per unit of risk. If you would invest 14,000 in Compagnie Du Mont Blanc on September 4, 2024 and sell it today you would earn a total of 400.00 from holding Compagnie Du Mont Blanc or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Compagnie Du Mont Blanc vs. Trigano SA
Performance |
| Timeline |
| Compagnie Du Mont |
| Trigano SA |
Compagnie and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie and Trigano SA
The main advantage of trading using opposite Compagnie and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie 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.| Compagnie vs. Trigano SA | Compagnie vs. SA Catana Group | Compagnie vs. Fountaine Pajo | Compagnie vs. Piscines Desjoyaux SA |
| Trigano SA vs. SA Catana Group | Trigano SA vs. Fountaine Pajo | Trigano SA vs. Piscines Desjoyaux SA | Trigano SA vs. Impulse Fitness Solutions |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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