Correlation Between Fiducial Office and Trigano SA

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

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

Diversification Opportunities for Fiducial Office and Trigano SA

0.28

Correlation Coefficient

Fiducial Office  Trigano SA

Modest diversification

The 3 months correlation between Fiducial and Trigano is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fiducial Office Solutions and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano SA and Fiducial Office 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 Fiducial Office Solutions are associated (or correlated) with Trigano SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trigano SA has no effect on the direction of Fiducial Office i.e., Fiducial Office and Trigano SA go up and down completely randomly.

Pair Corralation between Fiducial Office and Trigano SA

Assuming the 90 days trading horizon Fiducial Office is expected to generate 10.16 times less return on investment than Trigano SA. But when comparing it to its historical volatility, Fiducial Office Solutions is 5.29 times less risky than Trigano SA. It trades about 0.04 of its potential returns per unit of risk. Trigano SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  11,366  in Trigano SA on September 30, 2024 and sell it today you would earn a total of  794.00  from holding Trigano SA or generate 6.99% return on investment over 90 days.

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

Fiducial Office Solutions  vs.  Trigano SA

Fiducial Office Solutions

Risk-Adjusted Performance

3 of 100

Insignificant

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

Trigano SA

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Trigano SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Trigano SA may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Fiducial Office and Trigano SA

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

The idea behind Fiducial Office Solutions and Trigano SA 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.