Correlation Between Trigano SA and Fnac Darty
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Fnac Darty 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 Fnac Darty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Fnac Darty SA, you can compare the effects of market volatilities on Trigano SA and Fnac Darty 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 Fnac Darty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Fnac Darty.
Diversification Opportunities for Trigano SA and Fnac Darty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trigano and Fnac is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Fnac Darty SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fnac Darty SA 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 Fnac Darty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fnac Darty SA has no effect on the direction of Trigano SA i.e., Trigano SA and Fnac Darty go up and down completely randomly.
Pair Corralation between Trigano SA and Fnac Darty
Assuming the 90 days trading horizon Trigano SA is expected to generate 0.93 times more return on investment than Fnac Darty. However, Trigano SA is 1.08 times less risky than Fnac Darty. It trades about -0.04 of its potential returns per unit of risk. Fnac Darty SA is currently generating about -0.06 per unit of risk. If you would invest 13,691 in Trigano SA on September 1, 2024 and sell it today you would lose (1,781) from holding Trigano SA or give up 13.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Trigano SA vs. Fnac Darty SA
Performance |
| Timeline |
| Trigano SA |
| Fnac Darty SA |
Trigano SA and Fnac Darty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Fnac Darty
The main advantage of trading using opposite Trigano SA and Fnac Darty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Fnac Darty 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 Fnac Darty will offset losses from the drop in Fnac Darty'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 |
| Fnac Darty vs. Vente Unique | Fnac Darty vs. Groupe Sfpi | Fnac Darty vs. Cegedim SA | Fnac Darty vs. SA Catana Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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