Correlation Between Piscines Desjoyaux and Trigano SA

Can any of the company-specific risk be diversified away by investing in both Piscines Desjoyaux and Trigano 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 Piscines Desjoyaux and Trigano SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Piscines Desjoyaux SA and Trigano SA, you can compare the effects of market volatilities on Piscines Desjoyaux and Trigano 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 Piscines Desjoyaux with a short position of Trigano SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piscines Desjoyaux and Trigano SA.

Diversification Opportunities for Piscines Desjoyaux and Trigano SA

-0.57

Correlation Coefficient

Piscines Desjoyaux  Trigano SA

Excellent diversification

The 3 months correlation between Piscines and Trigano is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Piscines Desjoyaux SA and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Piscines Desjoyaux 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 Piscines Desjoyaux SA are associated (or correlated) with Trigano SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trigano SA has no effect on the direction of Piscines Desjoyaux i.e., Piscines Desjoyaux and Trigano SA go up and down completely randomly.

Pair Corralation between Piscines Desjoyaux and Trigano SA

Assuming the 90 days trading horizon Piscines Desjoyaux SA is expected to under-perform the Trigano SA. But the stock apears to be less risky and, when comparing its historical volatility, Piscines Desjoyaux SA is 1.14 times less risky than Trigano SA. The stock trades about -0.01 of its potential returns per unit of risk. The Trigano SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  11,712  in Trigano SA on September 3, 2024 and sell it today you would earn a total of  198.00  from holding Trigano SA or generate 1.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Piscines Desjoyaux SA  vs.  Trigano SA

Piscines Desjoyaux

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Piscines Desjoyaux SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Piscines Desjoyaux is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Trigano SA

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trigano SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Trigano SA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Piscines Desjoyaux and Trigano SA

The main advantage of trading using opposite Piscines Desjoyaux and Trigano SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piscines Desjoyaux position performs unexpectedly, Trigano 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 Trigano SA will offset losses from the drop in Trigano SA's long position.

The idea behind Piscines Desjoyaux SA and Trigano SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.