Correlation Between Gaztransport and Vivendi SA
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Vivendi 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 Gaztransport and Vivendi SA 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 Vivendi SA, you can compare the effects of market volatilities on Gaztransport and Vivendi 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 Gaztransport with a short position of Vivendi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Vivendi SA.
Diversification Opportunities for Gaztransport and Vivendi SA
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Vivendi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Vivendi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SA 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 Vivendi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SA has no effect on the direction of Gaztransport i.e., Gaztransport and Vivendi SA go up and down completely randomly.
Pair Corralation between Gaztransport and Vivendi SA
Assuming the 90 days trading horizon Gaztransport is expected to generate 1.1 times less return on investment than Vivendi SA. But when comparing it to its historical volatility, Gaztransport et Technigaz is 1.87 times less risky than Vivendi SA. It trades about 0.29 of its potential returns per unit of risk. Vivendi SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 256.00 in Vivendi SA on November 4, 2024 and sell it today you would earn a total of 17.00 from holding Vivendi SA or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Vivendi SA
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Vivendi SA |
Gaztransport and Vivendi SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Vivendi SA
The main advantage of trading using opposite Gaztransport and Vivendi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Vivendi 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 Vivendi SA will offset losses from the drop in Vivendi SA's long position.| Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Toyota Motor Corp | Gaztransport vs. Reliance Industries Ltd |
| Vivendi SA vs. Roper Technologies | Vivendi SA vs. Cellnex Telecom SA | Vivendi SA vs. Cairo Communication SpA | Vivendi SA vs. DXC Technology Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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