Correlation Between Trigano SA and Xilam Animation
Can any of the company-specific risk be diversified away by investing in both Trigano SA and Xilam Animation 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 Xilam Animation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trigano SA and Xilam Animation, you can compare the effects of market volatilities on Trigano SA and Xilam Animation 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 Xilam Animation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Xilam Animation.
Diversification Opportunities for Trigano SA and Xilam Animation
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trigano and Xilam is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Xilam Animation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilam Animation 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 Xilam Animation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilam Animation has no effect on the direction of Trigano SA i.e., Trigano SA and Xilam Animation go up and down completely randomly.
Pair Corralation between Trigano SA and Xilam Animation
Assuming the 90 days trading horizon Trigano SA is expected to generate 0.49 times more return on investment than Xilam Animation. However, Trigano SA is 2.06 times less risky than Xilam Animation. It trades about 0.01 of its potential returns per unit of risk. Xilam Animation is currently generating about -0.08 per unit of risk. If you would invest 11,693 in Trigano SA on August 27, 2024 and sell it today you would earn a total of 67.00 from holding Trigano SA or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trigano SA vs. Xilam Animation
Performance |
| Timeline |
| Trigano SA |
| Xilam Animation |
Trigano SA and Xilam Animation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trigano SA and Xilam Animation
The main advantage of trading using opposite Trigano SA and Xilam Animation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trigano SA position performs unexpectedly, Xilam Animation 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 Xilam Animation will offset losses from the drop in Xilam Animation's long position.| Trigano SA vs. Metalliance SA | Trigano SA vs. Veolia Environnement VE | Trigano SA vs. Jacquet Metal Service | Trigano SA vs. Linedata Services SA |
| Xilam Animation vs. BigBen Interactive | Xilam Animation vs. Trigano SA | Xilam Animation vs. Lumibird SA | Xilam Animation vs. Chargeurs 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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