Correlation Between Tikehau Capital and Antin IP

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

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

Diversification Opportunities for Tikehau Capital and Antin IP

0.83

Correlation Coefficient

Tikehau Capital  Antin IP

Very poor diversification

The 3 months correlation between Tikehau and Antin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tikehau Capital and Antin IP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antin IP SA and Tikehau Capital 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 Tikehau Capital are associated (or correlated) with Antin IP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antin IP SA has no effect on the direction of Tikehau Capital i.e., Tikehau Capital and Antin IP go up and down completely randomly.

Pair Corralation between Tikehau Capital and Antin IP

Assuming the 90 days trading horizon Tikehau Capital is expected to generate 0.56 times more return on investment than Antin IP. However, Tikehau Capital is 1.78 times less risky than Antin IP. It trades about -0.07 of its potential returns per unit of risk. Antin IP SA is currently generating about -0.1 per unit of risk. If you would invest  2,235  in Tikehau Capital on August 31, 2024 and sell it today you would lose (135.00) from holding Tikehau Capital or give up 6.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Tikehau Capital  vs.  Antin IP SA

Tikehau Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tikehau Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tikehau Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Antin IP SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antin IP SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Tikehau Capital and Antin IP

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

The idea behind Tikehau Capital and Antin IP 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.