Correlation Between Trigano SA and SA Catana
Can any of the company-specific risk be diversified away by investing in both Trigano SA and SA Catana 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 SA Catana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and SA Catana Group, you can compare the effects of market volatilities on Trigano SA and SA Catana 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 SA Catana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and SA Catana.
Diversification Opportunities for Trigano SA and SA Catana
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trigano and CATG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and SA Catana Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SA Catana Group 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 SA Catana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SA Catana Group has no effect on the direction of Trigano SA i.e., Trigano SA and SA Catana go up and down completely randomly.
Pair Corralation between Trigano SA and SA Catana
Assuming the 90 days trading horizon Trigano SA is expected to generate 0.93 times more return on investment than SA Catana. However, Trigano SA is 1.07 times less risky than SA Catana. It trades about 0.01 of its potential returns per unit of risk. SA Catana Group is currently generating about -0.03 per unit of risk. If you would invest 11,520 in Trigano SA on August 24, 2024 and sell it today you would earn a total of 240.00 from holding Trigano SA or generate 2.08% 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. SA Catana Group
Performance |
| Timeline |
| Trigano SA |
| SA Catana Group |
Trigano SA and SA Catana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and SA Catana
The main advantage of trading using opposite Trigano SA and SA Catana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, SA Catana 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 SA Catana will offset losses from the drop in SA Catana's long position.| Trigano SA vs. Credit Agricole SA | Trigano SA vs. Eutelsat Communications SA | Trigano SA vs. Marie Brizard Wine | Trigano SA vs. Sidetrade |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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