Correlation Between Gaztransport and Argentex Group
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Argentex Group 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 Argentex Group 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 Argentex Group PLC, you can compare the effects of market volatilities on Gaztransport and Argentex Group 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 Argentex Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Argentex Group.
Diversification Opportunities for Gaztransport and Argentex Group
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and Argentex is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Argentex Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argentex Group PLC 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 Argentex Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argentex Group PLC has no effect on the direction of Gaztransport i.e., Gaztransport and Argentex Group go up and down completely randomly.
Pair Corralation between Gaztransport and Argentex Group
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.38 times more return on investment than Argentex Group. However, Gaztransport et Technigaz is 2.64 times less risky than Argentex Group. It trades about 0.04 of its potential returns per unit of risk. Argentex Group PLC is currently generating about -0.07 per unit of risk. If you would invest 12,018 in Gaztransport et Technigaz on September 4, 2024 and sell it today you would earn a total of 1,427 from holding Gaztransport et Technigaz or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Argentex Group PLC
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Argentex Group PLC |
Gaztransport and Argentex Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Argentex Group
The main advantage of trading using opposite Gaztransport and Argentex Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Argentex Group 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 Argentex Group will offset losses from the drop in Argentex Group's long position.| Gaztransport vs. Darden Restaurants | Gaztransport vs. Silvercorp Metals | Gaztransport vs. Neometals | Gaztransport vs. STMicroelectronics NV |
| Argentex Group vs. SupplyMe Capital PLC | Argentex Group vs. Lloyds Banking Group | Argentex Group vs. Premier African Minerals | Argentex Group vs. SANTANDER UK 8 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |