Correlation Between Trigano SA and Societe De

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

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

Diversification Opportunities for Trigano SA and Societe De

0.91

Correlation Coefficient

Trigano SA  Societe De

Almost no diversification

The 3 months correlation between Trigano and Societe is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Trigano SA and Societe de Tayninh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Societe de Tayninh 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 Societe De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Societe de Tayninh has no effect on the direction of Trigano SA i.e., Trigano SA and Societe De go up and down completely randomly.

Pair Corralation between Trigano SA and Societe De

Assuming the 90 days trading horizon Trigano SA is expected to generate 0.63 times more return on investment than Societe De. However, Trigano SA is 1.59 times less risky than Societe De. It trades about 0.35 of its potential returns per unit of risk. Societe de Tayninh is currently generating about 0.21 per unit of risk. If you would invest  10,252  in Trigano SA on April 25, 2025 and sell it today you would earn a total of  5,258  from holding Trigano SA or generate 51.29% return on investment over 90 days.

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

Trigano SA  vs.  Societe de Tayninh

Trigano SA

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Trigano SA are ranked lower than 27 (%) 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.

Societe de Tayninh

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Societe de Tayninh are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Societe De sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trigano SA and Societe De

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

The idea behind Trigano SA and Societe de Tayninh 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.