Correlation Between Tikehau Capital and OVH Groupe
Can any of the company-specific risk be diversified away by investing in both Tikehau Capital and OVH Groupe 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 Tikehau Capital and OVH Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tikehau Capital and OVH Groupe SAS, you can compare the effects of market volatilities on Tikehau Capital and OVH Groupe 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 Tikehau Capital with a short position of OVH Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tikehau Capital and OVH Groupe.
Diversification Opportunities for Tikehau Capital and OVH Groupe
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tikehau and OVH is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tikehau Capital and OVH Groupe SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OVH Groupe SAS and Tikehau Capital 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 Tikehau Capital are associated (or correlated) with OVH Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OVH Groupe SAS has no effect on the direction of Tikehau Capital i.e., Tikehau Capital and OVH Groupe go up and down completely randomly.
Pair Corralation between Tikehau Capital and OVH Groupe
Assuming the 90 days trading horizon Tikehau Capital is expected to generate 0.41 times more return on investment than OVH Groupe. However, Tikehau Capital is 2.44 times less risky than OVH Groupe. It trades about 0.03 of its potential returns per unit of risk. OVH Groupe SAS is currently generating about 0.01 per unit of risk. If you would invest 1,914 in Tikehau Capital on September 3, 2024 and sell it today you would earn a total of 131.00 from holding Tikehau Capital or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tikehau Capital vs. OVH Groupe SAS
Performance |
| Timeline |
| Tikehau Capital |
| OVH Groupe SAS |
Tikehau Capital and OVH Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tikehau Capital and OVH Groupe
The main advantage of trading using opposite Tikehau Capital and OVH Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tikehau Capital position performs unexpectedly, OVH Groupe 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 OVH Groupe will offset losses from the drop in OVH Groupe's long position.| Tikehau Capital vs. Eurazeo | Tikehau Capital vs. Wendel | Tikehau Capital vs. SPIE SA | Tikehau Capital vs. Amundi SA |
| OVH Groupe vs. La Francaise Des | OVH Groupe vs. TotalEnergies SE | OVH Groupe vs. Worldline SA | OVH Groupe vs. Atos SE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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