Correlation Between Trigano SA and Dolfines SAS
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Dolfines SAS 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 Dolfines SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Dolfines SAS, you can compare the effects of market volatilities on Trigano SA and Dolfines SAS 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 Dolfines SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Dolfines SAS.
Diversification Opportunities for Trigano SA and Dolfines SAS
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trigano and Dolfines is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Dolfines SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolfines SAS 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 Dolfines SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolfines SAS has no effect on the direction of Trigano SA i.e., Trigano SA and Dolfines SAS go up and down completely randomly.
Pair Corralation between Trigano SA and Dolfines SAS
Assuming the 90 days trading horizon Trigano SA is expected to under-perform the Dolfines SAS. But the stock apears to be less risky and, when comparing its historical volatility, Trigano SA is 28.71 times less risky than Dolfines SAS. The stock trades about 0.0 of its potential returns per unit of risk. The Dolfines SAS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Dolfines SAS on September 1, 2024 and sell it today you would lose (2,712) from holding Dolfines SAS or give up 93.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Dolfines SAS
Performance |
| Timeline |
| Trigano SA |
| Dolfines SAS |
Trigano SA and Dolfines SAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Dolfines SAS
The main advantage of trading using opposite Trigano SA and Dolfines SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Dolfines SAS 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 Dolfines SAS will offset losses from the drop in Dolfines SAS's long position.| Trigano SA vs. Mediantechn | Trigano SA vs. Gaztransport Technigaz SAS | Trigano SA vs. DONTNOD Entertainment SA | Trigano SA vs. Union Technologies Informatique |
| Dolfines SAS vs. Vergnet | Dolfines SAS vs. DBT SA | Dolfines SAS vs. Drone Volt SA | Dolfines SAS vs. Gaussin |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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