Correlation Between Trigano SA and Exel Industries
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Exel Industries 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 Exel Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Exel Industries, you can compare the effects of market volatilities on Trigano SA and Exel Industries 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 Exel Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Exel Industries.
Diversification Opportunities for Trigano SA and Exel Industries
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trigano and Exel is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Exel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exel Industries 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 Exel Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exel Industries has no effect on the direction of Trigano SA i.e., Trigano SA and Exel Industries go up and down completely randomly.
Pair Corralation between Trigano SA and Exel Industries
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.42 times more return on investment than Exel Industries. However, Trigano SA is 1.42 times more volatile than Exel Industries. It trades about -0.13 of its potential returns per unit of risk. Exel Industries is currently generating about -0.36 per unit of risk. If you would invest 12,500 in Trigano SA on September 2, 2024 and sell it today you would lose (590.00) from holding Trigano SA or give up 4.72% 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. Exel Industries
Performance |
| Timeline |
| Trigano SA |
| Exel Industries |
Trigano SA and Exel Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Exel Industries
The main advantage of trading using opposite Trigano SA and Exel Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Exel Industries 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 Exel Industries will offset losses from the drop in Exel Industries' long position.| Trigano SA vs. Bonduelle SCA | Trigano SA vs. Imerys SA | Trigano SA vs. Manitou BF SA | Trigano SA vs. Ossiam Minimum Variance |
| Exel Industries vs. Manitou BF SA | Exel Industries vs. NRJ Group | Exel Industries vs. Etablissements Maurel et | Exel Industries vs. Trigano 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |