Correlation Between Trigano SA and La Savonnerie
Can any of the company-specific risk be diversified away by investing in both Trigano SA and La Savonnerie 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 La Savonnerie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and La Savonnerie de, you can compare the effects of market volatilities on Trigano SA and La Savonnerie 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 La Savonnerie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and La Savonnerie.
Diversification Opportunities for Trigano SA and La Savonnerie
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trigano and MLSDN is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and La Savonnerie de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Savonnerie de 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 La Savonnerie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Savonnerie de has no effect on the direction of Trigano SA i.e., Trigano SA and La Savonnerie go up and down completely randomly.
Pair Corralation between Trigano SA and La Savonnerie
Assuming the 90 days trading horizon Trigano SA is expected to generate 5.84 times less return on investment than La Savonnerie. But when comparing it to its historical volatility, Trigano SA is 2.14 times less risky than La Savonnerie. It trades about 0.01 of its potential returns per unit of risk. La Savonnerie de is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,742 in La Savonnerie de on August 26, 2024 and sell it today you would earn a total of 238.00 from holding La Savonnerie de or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.47% |
| Values | Daily Returns |
Trigano SA vs. La Savonnerie de
Performance |
| Timeline |
| Trigano SA |
| La Savonnerie de |
Trigano SA and La Savonnerie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and La Savonnerie
The main advantage of trading using opposite Trigano SA and La Savonnerie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, La Savonnerie 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 La Savonnerie will offset losses from the drop in La Savonnerie's long position.| Trigano SA vs. BEBO Health SA | Trigano SA vs. Gaztransport Technigaz SAS | Trigano SA vs. Broadpeak SA | Trigano SA vs. Guandao Puer Investment |
| La Savonnerie vs. Remy Cointreau | La Savonnerie vs. Alten SA | La Savonnerie vs. Gaztransport Technigaz SAS | La Savonnerie 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |