Correlation Between Trigano SA and Etablissements Maurel
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Etablissements Maurel 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 Etablissements Maurel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Etablissements Maurel et, you can compare the effects of market volatilities on Trigano SA and Etablissements Maurel 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 Etablissements Maurel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Etablissements Maurel.
Diversification Opportunities for Trigano SA and Etablissements Maurel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trigano and Etablissements is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Etablissements Maurel et in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etablissements Maurel 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 Etablissements Maurel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etablissements Maurel has no effect on the direction of Trigano SA i.e., Trigano SA and Etablissements Maurel go up and down completely randomly.
Pair Corralation between Trigano SA and Etablissements Maurel
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.16 times more return on investment than Etablissements Maurel. However, Trigano SA is 1.16 times more volatile than Etablissements Maurel et. It trades about -0.04 of its potential returns per unit of risk. Etablissements Maurel et is currently generating about -0.08 per unit of risk. If you would invest 13,691 in Trigano SA on August 31, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Etablissements Maurel et
Performance |
| Timeline |
| Trigano SA |
| Etablissements Maurel |
Trigano SA and Etablissements Maurel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Etablissements Maurel
The main advantage of trading using opposite Trigano SA and Etablissements Maurel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Etablissements Maurel 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 Etablissements Maurel will offset losses from the drop in Etablissements Maurel's long position.| Trigano SA vs. Invibes Advertising NV | Trigano SA vs. Sidetrade | Trigano SA vs. Eutelsat Communications SA | Trigano SA vs. Groupe Pizzorno Environnement |
| Etablissements Maurel vs. Vallourec | Etablissements Maurel vs. Eramet SA | Etablissements Maurel vs. Soitec SA | Etablissements Maurel vs. Nexans 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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