Correlation Between Trigano SA and Sword Group
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Sword Group 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 Sword Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Sword Group SE, you can compare the effects of market volatilities on Trigano SA and Sword Group 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 Sword Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Sword Group.
Diversification Opportunities for Trigano SA and Sword Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Trigano and Sword is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Sword Group SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sword Group SE 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 Sword Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sword Group SE has no effect on the direction of Trigano SA i.e., Trigano SA and Sword Group go up and down completely randomly.
Pair Corralation between Trigano SA and Sword Group
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.15 times more return on investment than Sword Group. However, Trigano SA is 1.15 times more volatile than Sword Group SE. It trades about 0.0 of its potential returns per unit of risk. Sword Group SE is currently generating about -0.01 per unit of risk. If you would invest 12,487 in Trigano SA on September 1, 2024 and sell it today you would lose (577.00) from holding Trigano SA or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Trigano SA vs. Sword Group SE
Performance |
| Timeline |
| Trigano SA |
| Sword Group SE |
Trigano SA and Sword Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Sword Group
The main advantage of trading using opposite Trigano SA and Sword Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Sword Group 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 Sword Group will offset losses from the drop in Sword Group'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 |
| Sword Group vs. Aubay Socit Anonyme | Sword Group vs. Neurones | Sword Group vs. Rubis SCA | Sword Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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