Correlation Between Seche Environnem and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Seche Environnem 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 Seche Environnem and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seche Environnem and Trigano SA, you can compare the effects of market volatilities on Seche Environnem 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 Seche Environnem with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnem and Trigano SA.
Diversification Opportunities for Seche Environnem and Trigano SA
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seche and Trigano is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnem and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Seche Environnem 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 Seche Environnem 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 Seche Environnem i.e., Seche Environnem and Trigano SA go up and down completely randomly.
Pair Corralation between Seche Environnem and Trigano SA
Assuming the 90 days trading horizon Seche Environnem is expected to under-perform the Trigano SA. But the stock apears to be less risky and, when comparing its historical volatility, Seche Environnem is 1.38 times less risky than Trigano SA. The stock trades about -0.32 of its potential returns per unit of risk. The Trigano SA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 11,900 in Trigano SA on September 14, 2024 and sell it today you would earn a total of 630.00 from holding Trigano SA or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seche Environnem vs. Trigano SA
Performance |
| Timeline |
| Seche Environnem |
| Trigano SA |
Seche Environnem and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seche Environnem and Trigano SA
The main advantage of trading using opposite Seche Environnem and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnem 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.| Seche Environnem vs. X Fab Silicon | Seche Environnem vs. Gaztransport Technigaz SAS | Seche Environnem vs. Lexibook Linguistic Electronic | Seche Environnem vs. Fiducial Office Solutions |
| Trigano SA vs. Bnteau SA | Trigano SA vs. SA Catana Group | Trigano SA vs. Fountaine Pajo | Trigano SA vs. Piscines Desjoyaux 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |