Correlation Between Trigano SA and Publicis Groupe
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Publicis Groupe 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 Publicis Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Publicis Groupe SA, you can compare the effects of market volatilities on Trigano SA and Publicis Groupe 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 Publicis Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Publicis Groupe.
Diversification Opportunities for Trigano SA and Publicis Groupe
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trigano and Publicis is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Publicis Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Publicis Groupe 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 Publicis Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Publicis Groupe SA has no effect on the direction of Trigano SA i.e., Trigano SA and Publicis Groupe go up and down completely randomly.
Pair Corralation between Trigano SA and Publicis Groupe
Assuming the 90 days trading horizon Trigano SA is expected to under-perform the Publicis Groupe. But the stock apears to be less risky and, when comparing its historical volatility, Trigano SA is 1.1 times less risky than Publicis Groupe. The stock trades about -0.13 of its potential returns per unit of risk. The Publicis Groupe SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 9,772 in Publicis Groupe SA on September 1, 2024 and sell it today you would earn a total of 498.00 from holding Publicis Groupe SA or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Trigano SA vs. Publicis Groupe SA
Performance |
| Timeline |
| Trigano SA |
| Publicis Groupe SA |
Trigano SA and Publicis Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Publicis Groupe
The main advantage of trading using opposite Trigano SA and Publicis Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Publicis Groupe 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 Publicis Groupe will offset losses from the drop in Publicis Groupe'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 |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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