Correlation Between Trigano SA and Bilendi
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Bilendi 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 Trigano SA and Bilendi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Bilendi, you can compare the effects of market volatilities on Trigano SA and Bilendi 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 Trigano SA with a short position of Bilendi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Bilendi.
Diversification Opportunities for Trigano SA and Bilendi
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trigano and Bilendi is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Bilendi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilendi and Trigano 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 Trigano SA are associated (or correlated) with Bilendi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilendi has no effect on the direction of Trigano SA i.e., Trigano SA and Bilendi go up and down completely randomly.
Pair Corralation between Trigano SA and Bilendi
Assuming the 90 days trading horizon Trigano SA is expected to generate 0.95 times more return on investment than Bilendi. However, Trigano SA is 1.05 times less risky than Bilendi. It trades about -0.02 of its potential returns per unit of risk. Bilendi is currently generating about -0.73 per unit of risk. If you would invest 11,730 in Trigano SA on August 24, 2024 and sell it today you would lose (90.00) from holding Trigano SA or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Bilendi
Performance |
| Timeline |
| Trigano SA |
| Bilendi |
Trigano SA and Bilendi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Bilendi
The main advantage of trading using opposite Trigano SA and Bilendi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Bilendi 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 Bilendi will offset losses from the drop in Bilendi's long position.| Trigano SA vs. Bnteau SA | Trigano SA vs. Voyageurs du Monde | Trigano SA vs. SA Catana Group | Trigano SA vs. Fountaine Pajo |
| Bilendi vs. BigBen Interactive | Bilendi vs. Trigano SA | Bilendi vs. Chargeurs SA | Bilendi vs. Manitou BF 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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