Correlation Between Trigano SA and Les Hotels
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Les Hotels 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 Les Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Les Hotels Bav, you can compare the effects of market volatilities on Trigano SA and Les Hotels 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 Les Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Les Hotels.
Diversification Opportunities for Trigano SA and Les Hotels
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trigano and Les is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Les Hotels Bav in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Les Hotels Bav 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 Les Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Les Hotels Bav has no effect on the direction of Trigano SA i.e., Trigano SA and Les Hotels go up and down completely randomly.
Pair Corralation between Trigano SA and Les Hotels
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.94 times more return on investment than Les Hotels. However, Trigano SA is 1.94 times more volatile than Les Hotels Bav. It trades about 0.07 of its potential returns per unit of risk. Les Hotels Bav is currently generating about 0.0 per unit of risk. If you would invest 12,160 in Trigano SA on September 13, 2024 and sell it today you would earn a total of 320.00 from holding Trigano SA or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Les Hotels Bav
Performance |
| Timeline |
| Trigano SA |
| Les Hotels Bav |
Trigano SA and Les Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Les Hotels
The main advantage of trading using opposite Trigano SA and Les Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Les Hotels 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 Les Hotels will offset losses from the drop in Les Hotels' long position.| Trigano SA vs. Seche Environnem | Trigano SA vs. Guandao Puer Investment | Trigano SA vs. Sidetrade | Trigano SA vs. Eutelsat Communications SA |
| Les Hotels vs. Les Htels de | Les Hotels vs. Moulinvest | Les Hotels vs. Bernard Loisea | Les Hotels vs. Groupimo 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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