Correlation Between Trigano SA and Bastide Le
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Bastide Le 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 Bastide Le into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Bastide Le Confort, you can compare the effects of market volatilities on Trigano SA and Bastide Le 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 Bastide Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Bastide Le.
Diversification Opportunities for Trigano SA and Bastide Le
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trigano and Bastide is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Bastide Le Confort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bastide Le Confort 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 Bastide Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bastide Le Confort has no effect on the direction of Trigano SA i.e., Trigano SA and Bastide Le go up and down completely randomly.
Pair Corralation between Trigano SA and Bastide Le
Assuming the 90 days trading horizon Trigano SA is expected to under-perform the Bastide Le. But the stock apears to be less risky and, when comparing its historical volatility, Trigano SA is 1.06 times less risky than Bastide Le. The stock trades about -0.04 of its potential returns per unit of risk. The Bastide Le Confort is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,220 in Bastide Le Confort on September 1, 2024 and sell it today you would lose (140.00) from holding Bastide Le Confort or give up 6.31% 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. Bastide Le Confort
Performance |
| Timeline |
| Trigano SA |
| Bastide Le Confort |
Trigano SA and Bastide Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Bastide Le
The main advantage of trading using opposite Trigano SA and Bastide Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Bastide Le 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 Bastide Le will offset losses from the drop in Bastide Le'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 |
| Bastide Le vs. LNA Sante SA | Bastide Le vs. Chargeurs SA | Bastide Le vs. Trigano SA | Bastide Le vs. Boiron 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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