Correlation Between Groupe Partouche and Trilogiq

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

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

Diversification Opportunities for Groupe Partouche and Trilogiq

-0.59

Correlation Coefficient

Groupe Partouche  Trilogiq

Excellent diversification

The 3 months correlation between Groupe and Trilogiq is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Groupe Partouche SA and Trilogiq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trilogiq and Groupe Partouche 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 Groupe Partouche SA 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 Groupe Partouche i.e., Groupe Partouche and Trilogiq go up and down completely randomly.

Pair Corralation between Groupe Partouche and Trilogiq

Assuming the 90 days trading horizon Groupe Partouche SA is expected to generate 1.16 times more return on investment than Trilogiq. However, Groupe Partouche is 1.16 times more volatile than Trilogiq. It trades about 0.08 of its potential returns per unit of risk. Trilogiq is currently generating about -0.04 per unit of risk. If you would invest  1,895  in Groupe Partouche SA on September 5, 2024 and sell it today you would earn a total of  175.00  from holding Groupe Partouche SA or generate 9.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Groupe Partouche SA  vs.  Trilogiq

Groupe Partouche

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe Partouche SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Groupe Partouche may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Trilogiq

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Groupe Partouche and Trilogiq

The main advantage of trading using opposite Groupe Partouche and Trilogiq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe Partouche 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 Groupe Partouche SA 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.