Correlation Between Trigano SA and Compagnie
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Compagnie 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 Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Compagnie Du Mont Blanc, you can compare the effects of market volatilities on Trigano SA and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Compagnie.
Diversification Opportunities for Trigano SA and Compagnie
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trigano and Compagnie is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Compagnie Du Mont Blanc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Du Mont 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Du Mont has no effect on the direction of Trigano SA i.e., Trigano SA and Compagnie go up and down completely randomly.
Pair Corralation between Trigano SA and Compagnie
Assuming the 90 days trading horizon Trigano SA is expected to generate 19.53 times less return on investment than Compagnie. But when comparing it to its historical volatility, Trigano SA is 1.22 times less risky than Compagnie. It trades about 0.01 of its potential returns per unit of risk. Compagnie Du Mont Blanc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 13,348 in Compagnie Du Mont Blanc on September 12, 2024 and sell it today you would earn a total of 752.00 from holding Compagnie Du Mont Blanc or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Compagnie Du Mont Blanc
Performance |
| Timeline |
| Trigano SA |
| Compagnie Du Mont |
Trigano SA and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Compagnie
The main advantage of trading using opposite Trigano SA and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| Trigano SA vs. Bnteau SA | Trigano SA vs. SA Catana Group | Trigano SA vs. Fountaine Pajo | Trigano SA vs. Piscines Desjoyaux SA |
| Compagnie vs. Trigano SA | Compagnie vs. Bnteau SA | Compagnie vs. SA Catana Group | Compagnie vs. Fountaine Pajo |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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