Correlation Between Gaztransport and Pfeiffer Vacuum
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Pfeiffer Vacuum 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 Gaztransport and Pfeiffer Vacuum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Pfeiffer Vacuum Technology, you can compare the effects of market volatilities on Gaztransport and Pfeiffer Vacuum 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 Gaztransport with a short position of Pfeiffer Vacuum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Pfeiffer Vacuum.
Diversification Opportunities for Gaztransport and Pfeiffer Vacuum
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaztransport and Pfeiffer is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Pfeiffer Vacuum Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfeiffer Vacuum Tech and Gaztransport 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 Gaztransport et Technigaz are associated (or correlated) with Pfeiffer Vacuum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfeiffer Vacuum Tech has no effect on the direction of Gaztransport i.e., Gaztransport and Pfeiffer Vacuum go up and down completely randomly.
Pair Corralation between Gaztransport and Pfeiffer Vacuum
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 3.28 times more return on investment than Pfeiffer Vacuum. However, Gaztransport is 3.28 times more volatile than Pfeiffer Vacuum Technology. It trades about 0.04 of its potential returns per unit of risk. Pfeiffer Vacuum Technology is currently generating about 0.05 per unit of risk. If you would invest 11,388 in Gaztransport et Technigaz on September 14, 2024 and sell it today you would earn a total of 1,882 from holding Gaztransport et Technigaz or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Pfeiffer Vacuum Technology
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Pfeiffer Vacuum Tech |
Gaztransport and Pfeiffer Vacuum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Pfeiffer Vacuum
The main advantage of trading using opposite Gaztransport and Pfeiffer Vacuum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Pfeiffer Vacuum 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 Pfeiffer Vacuum will offset losses from the drop in Pfeiffer Vacuum's long position.| Gaztransport vs. Park Hotels Resorts | Gaztransport vs. Ross Stores | Gaztransport vs. Melia Hotels | Gaztransport vs. Silvercorp Metals |
| Pfeiffer Vacuum vs. Finnair Oyj | Pfeiffer Vacuum vs. Gaztransport et Technigaz | Pfeiffer Vacuum vs. Taiwan Semiconductor Manufacturing | Pfeiffer Vacuum vs. Ryanair Holdings 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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