Correlation Between Tikehau Capital and Believe SAS

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

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

Diversification Opportunities for Tikehau Capital and Believe SAS

0.0

Correlation Coefficient

Tikehau Capital  Believe SAS

Pay attention - limited upside

The 3 months correlation between Tikehau and Believe is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tikehau Capital and Believe SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Believe SAS and Tikehau Capital 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 Tikehau Capital are associated (or correlated) with Believe SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Believe SAS has no effect on the direction of Tikehau Capital i.e., Tikehau Capital and Believe SAS go up and down completely randomly.

Pair Corralation between Tikehau Capital and Believe SAS

If you would invest  0.00  in Tikehau Capital on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Tikehau Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Tikehau Capital  vs.  Believe SAS

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 somewhat strong basic indicators, Tikehau Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Believe SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Believe SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Believe SAS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tikehau Capital and Believe SAS

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

The idea behind Tikehau Capital and Believe SAS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.