Correlation Between Plastiques and Trilogiq

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

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

Diversification Opportunities for Plastiques and Trilogiq

0.23

Correlation Coefficient

Plastiques  Trilogiq

Modest diversification

The 3 months correlation between Plastiques and Trilogiq is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Plastiques du Val and Trilogiq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trilogiq and Plastiques 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 Plastiques du Val are associated (or correlated) with Trilogiq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trilogiq has no effect on the direction of Plastiques i.e., Plastiques and Trilogiq go up and down completely randomly.

Pair Corralation between Plastiques and Trilogiq

Assuming the 90 days trading horizon Plastiques is expected to generate 1.06 times less return on investment than Trilogiq. But when comparing it to its historical volatility, Plastiques du Val is 1.15 times less risky than Trilogiq. It trades about 0.05 of its potential returns per unit of risk. Trilogiq is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  575.00  in Trilogiq on April 24, 2025 and sell it today you would earn a total of  30.00  from holding Trilogiq or generate 5.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Plastiques du Val  vs.  Trilogiq

Plastiques du Val

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Plastiques du Val are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Plastiques may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Trilogiq

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Trilogiq are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Trilogiq may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Plastiques and Trilogiq

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

The idea behind Plastiques du Val and Trilogiq 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.