Correlation Between Trigano SA and Fill Up

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

By analyzing existing cross correlation between Trigano SA and Fill Up Media, you can compare the effects of market volatilities on Trigano SA and Fill Up 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 Fill Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trigano SA and Fill Up.

Diversification Opportunities for Trigano SA and Fill Up

0.03

Correlation Coefficient

Trigano SA  Fill Up

Significant diversification

The 3 months correlation between Trigano and Fill is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Fill Up Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fill Up Media 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 Fill Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fill Up Media has no effect on the direction of Trigano SA i.e., Trigano SA and Fill Up go up and down completely randomly.

Pair Corralation between Trigano SA and Fill Up

Assuming the 90 days trading horizon Trigano SA is expected to generate 1.76 times more return on investment than Fill Up. However, Trigano SA is 1.76 times more volatile than Fill Up Media. It trades about 0.03 of its potential returns per unit of risk. Fill Up Media is currently generating about -0.14 per unit of risk. If you would invest  12,030  in Trigano SA on October 23, 2024 and sell it today you would earn a total of  80.00  from holding Trigano SA or generate 0.67% return on investment over 90 days.

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

Trigano SA  vs.  Fill Up Media

Trigano SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Trigano SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong forward indicators, Trigano SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fill Up Media

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fill Up Media are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fill Up reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trigano SA and Fill Up

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

The idea behind Trigano SA and Fill Up Media 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.