Correlation Between Trigano SA and Mersen SA
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Mersen SA 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 Mersen SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Mersen SA, you can compare the effects of market volatilities on Trigano SA and Mersen SA 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 Mersen SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Mersen SA.
Diversification Opportunities for Trigano SA and Mersen SA
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Trigano and Mersen is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Mersen SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mersen 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 Mersen SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mersen SA has no effect on the direction of Trigano SA i.e., Trigano SA and Mersen SA go up and down completely randomly.
Pair Corralation between Trigano SA and Mersen SA
Assuming the 90 days trading horizon Trigano SA is expected to generate 0.73 times more return on investment than Mersen SA. However, Trigano SA is 1.37 times less risky than Mersen SA. It trades about -0.03 of its potential returns per unit of risk. Mersen SA is currently generating about -0.19 per unit of risk. If you would invest 12,090 in Trigano SA on August 27, 2024 and sell it today you would lose (150.00) from holding Trigano SA or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Mersen SA
Performance |
| Timeline |
| Trigano SA |
| Mersen SA |
Trigano SA and Mersen SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Mersen SA
The main advantage of trading using opposite Trigano SA and Mersen SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Mersen SA 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 Mersen SA will offset losses from the drop in Mersen SA's long position.| Trigano SA vs. Metalliance SA | Trigano SA vs. Veolia Environnement VE | Trigano SA vs. Jacquet Metal Service | Trigano SA vs. Linedata Services 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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