Correlation Between Antin IP and Tikehau Capital

Can any of the company-specific risk be diversified away by investing in both Antin IP and Tikehau Capital 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 Antin IP and Tikehau Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Antin IP and Tikehau Capital

0.74

Correlation Coefficient

Antin IP  Tikehau Capital

Poor diversification

The 3 months correlation between Antin and Tikehau is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Antin IP SA and Tikehau Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikehau Capital and Antin IP 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 Antin IP SA are associated (or correlated) with Tikehau Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikehau Capital has no effect on the direction of Antin IP i.e., Antin IP and Tikehau Capital go up and down completely randomly.

Pair Corralation between Antin IP and Tikehau Capital

Assuming the 90 days trading horizon Antin IP SA is expected to generate 1.85 times more return on investment than Tikehau Capital. However, Antin IP is 1.85 times more volatile than Tikehau Capital. It trades about -0.04 of its potential returns per unit of risk. Tikehau Capital is currently generating about -0.23 per unit of risk. If you would invest  1,220  in Antin IP SA on September 17, 2024 and sell it today you would lose (82.00) from holding Antin IP SA or give up 6.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Antin IP SA  vs.  Tikehau Capital

Antin IP SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Tikehau Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tikehau Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Antin IP and Tikehau Capital

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

The idea behind Antin IP SA and Tikehau Capital 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .