Correlation Between Tanger Factory and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Tanger Factory and Gaztransport 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 Tanger Factory and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tanger Factory Outlet and Gaztransport et Technigaz, you can compare the effects of market volatilities on Tanger Factory and Gaztransport 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 Tanger Factory with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tanger Factory and Gaztransport.
Diversification Opportunities for Tanger Factory and Gaztransport
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tanger and Gaztransport is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tanger Factory Outlet and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz and Tanger Factory 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 Tanger Factory Outlet are associated (or correlated) with Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Tanger Factory i.e., Tanger Factory and Gaztransport go up and down completely randomly.
Pair Corralation between Tanger Factory and Gaztransport
Assuming the 90 days trading horizon Tanger Factory Outlet is expected to generate 0.98 times more return on investment than Gaztransport. However, Tanger Factory Outlet is 1.02 times less risky than Gaztransport. It trades about 0.16 of its potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.04 per unit of risk. If you would invest 2,753 in Tanger Factory Outlet on August 30, 2024 and sell it today you would earn a total of 921.00 from holding Tanger Factory Outlet or generate 33.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Tanger Factory Outlet vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Tanger Factory Outlet |
| Gaztransport et Technigaz |
Tanger Factory and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tanger Factory and Gaztransport
The main advantage of trading using opposite Tanger Factory and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tanger Factory position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Tanger Factory vs. Gaztransport et Technigaz | Tanger Factory vs. MTI Wireless Edge | Tanger Factory vs. Premier Foods PLC | Tanger Factory vs. Science in Sport |
| Gaztransport vs. Tungsten West PLC | Gaztransport vs. Argo Group Limited | Gaztransport vs. Hardide PLC | Gaztransport vs. Versarien PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |