Correlation Between Trigano SA and Vivendi SA
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Vivendi 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 Vivendi 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 Vivendi SA, you can compare the effects of market volatilities on Trigano SA and Vivendi 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 Vivendi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Vivendi SA.
Diversification Opportunities for Trigano SA and Vivendi SA
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trigano and Vivendi is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Vivendi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi 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 Vivendi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SA has no effect on the direction of Trigano SA i.e., Trigano SA and Vivendi SA go up and down completely randomly.
Pair Corralation between Trigano SA and Vivendi SA
Assuming the 90 days trading horizon Trigano SA is expected to generate 1.79 times less return on investment than Vivendi SA. But when comparing it to its historical volatility, Trigano SA is 1.31 times less risky than Vivendi SA. It trades about 0.12 of its potential returns per unit of risk. Vivendi SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 248.00 in Vivendi SA on December 11, 2024 and sell it today you would earn a total of 36.00 from holding Vivendi SA or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Vivendi SA
Performance |
| Timeline |
| Trigano SA |
| Vivendi SA |
Trigano SA and Vivendi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Vivendi SA
The main advantage of trading using opposite Trigano SA and Vivendi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Vivendi 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 Vivendi SA will offset losses from the drop in Vivendi SA's long position.| Trigano SA vs. Covivio Hotels | Trigano SA vs. Hotel Majestic Cannes | Trigano SA vs. Veolia Environnement VE | Trigano SA vs. ZCCM Investments Holdings |
| Vivendi SA vs. Vinci SA | Vivendi SA vs. Compagnie de Saint Gobain | Vivendi SA vs. Bouygues SA | Vivendi SA vs. Carrefour 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 CEOs Directory module to screen CEOs from public companies around the world.
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