Correlation Between Gaztransport and Associated British
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Associated British 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 Associated British 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 Associated British Foods, you can compare the effects of market volatilities on Gaztransport and Associated British 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 Associated British. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Associated British.
Diversification Opportunities for Gaztransport and Associated British
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Associated is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Associated British Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated British Foods 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 Associated British. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated British Foods has no effect on the direction of Gaztransport i.e., Gaztransport and Associated British go up and down completely randomly.
Pair Corralation between Gaztransport and Associated British
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.87 times more return on investment than Associated British. However, Gaztransport et Technigaz is 1.15 times less risky than Associated British. It trades about 0.09 of its potential returns per unit of risk. Associated British Foods is currently generating about -0.12 per unit of risk. If you would invest 12,840 in Gaztransport et Technigaz on September 3, 2024 and sell it today you would earn a total of 950.00 from holding Gaztransport et Technigaz or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Associated British Foods
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Associated British Foods |
Gaztransport and Associated British Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Associated British
The main advantage of trading using opposite Gaztransport and Associated British positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Associated British 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 Associated British will offset losses from the drop in Associated British's long position.| Gaztransport vs. Cairo Communication SpA | Gaztransport vs. Lundin Mining Corp | Gaztransport vs. Zegona Communications Plc | Gaztransport vs. Greenroc Mining PLC |
| Associated British vs. National Beverage Corp | Associated British vs. Solstad Offshore ASA | Associated British vs. Ashtead Technology Holdings | Associated British vs. Playtech 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |