Correlation Between Trigano SA and Sopra Steria
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Sopra Steria 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 Sopra Steria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Sopra Steria Group, you can compare the effects of market volatilities on Trigano SA and Sopra Steria 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 Sopra Steria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Sopra Steria.
Diversification Opportunities for Trigano SA and Sopra Steria
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trigano and Sopra is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Sopra Steria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sopra Steria Group 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 Sopra Steria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sopra Steria Group has no effect on the direction of Trigano SA i.e., Trigano SA and Sopra Steria go up and down completely randomly.
Pair Corralation between Trigano SA and Sopra Steria
Assuming the 90 days trading horizon Trigano SA is expected to under-perform the Sopra Steria. In addition to that, Trigano SA is 1.42 times more volatile than Sopra Steria Group. It trades about -0.13 of its total potential returns per unit of risk. Sopra Steria Group is currently generating about 0.07 per unit of volatility. If you would invest 17,580 in Sopra Steria Group on September 1, 2024 and sell it today you would earn a total of 300.00 from holding Sopra Steria Group or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Trigano SA vs. Sopra Steria Group
Performance |
| Timeline |
| Trigano SA |
| Sopra Steria Group |
Trigano SA and Sopra Steria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Sopra Steria
The main advantage of trading using opposite Trigano SA and Sopra Steria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Sopra Steria 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 Sopra Steria will offset losses from the drop in Sopra Steria'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 |
| Sopra Steria vs. Neurones | Sopra Steria vs. Infotel SA | Sopra Steria vs. Alten SA | Sopra Steria vs. Manitou BF 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |