Correlation Between Trigano SA and SPIE SA
Can any of the company-specific risk be diversified away by investing in both Trigano SA and SPIE 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 SPIE 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 SPIE SA, you can compare the effects of market volatilities on Trigano SA and SPIE 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 SPIE SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and SPIE SA.
Diversification Opportunities for Trigano SA and SPIE SA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trigano and SPIE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and SPIE SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPIE 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 SPIE SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPIE SA has no effect on the direction of Trigano SA i.e., Trigano SA and SPIE SA go up and down completely randomly.
Pair Corralation between Trigano SA and SPIE SA
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.17 times more return on investment than SPIE SA. However, Trigano SA is 1.17 times more volatile than SPIE SA. It trades about 0.14 of its potential returns per unit of risk. SPIE SA is currently generating about -0.11 per unit of risk. If you would invest 11,900 in Trigano SA on September 14, 2024 and sell it today you would earn a total of 630.00 from holding Trigano SA or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. SPIE SA
Performance |
| Timeline |
| Trigano SA |
| SPIE SA |
Trigano SA and SPIE SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and SPIE SA
The main advantage of trading using opposite Trigano SA and SPIE SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, SPIE 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 SPIE SA will offset losses from the drop in SPIE SA'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 |
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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