Correlation Between Sword Group and Trigano SA
Can any of the company-specific risk be diversified away by investing in both Sword Group 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 Sword Group and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sword Group SE and Trigano SA, you can compare the effects of market volatilities on Sword Group 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 Sword Group with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sword Group and Trigano SA.
Diversification Opportunities for Sword Group and Trigano SA
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sword and Trigano is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sword Group SE and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Sword Group 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 Sword Group SE 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 Sword Group i.e., Sword Group and Trigano SA go up and down completely randomly.
Pair Corralation between Sword Group and Trigano SA
Assuming the 90 days trading horizon Sword Group SE is expected to generate 0.82 times more return on investment than Trigano SA. However, Sword Group SE is 1.21 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 -0.13 per unit of risk. If you would invest 3,570 in Sword Group SE on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Sword Group SE or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sword Group SE vs. Trigano SA
Performance |
| Timeline |
| Sword Group SE |
| Trigano SA |
Sword Group and Trigano SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sword Group and Trigano SA
The main advantage of trading using opposite Sword Group and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sword Group 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.| Sword Group vs. Aubay Socit Anonyme | Sword Group vs. Neurones | Sword Group vs. Rubis SCA | Sword Group vs. Linedata Services 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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