Correlation Between Gaztransport and Cboe UK
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By analyzing existing cross correlation between Gaztransport et Technigaz and Cboe UK Consumer, you can compare the effects of market volatilities on Gaztransport and Cboe UK 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 Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Cboe UK.
Diversification Opportunities for Gaztransport and Cboe UK
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and Cboe is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer 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 Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of Gaztransport i.e., Gaztransport and Cboe UK go up and down completely randomly.
Pair Corralation between Gaztransport and Cboe UK
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to under-perform the Cboe UK. In addition to that, Gaztransport is 1.13 times more volatile than Cboe UK Consumer. It trades about -0.04 of its total potential returns per unit of risk. Cboe UK Consumer is currently generating about 0.38 per unit of volatility. If you would invest 3,079,006 in Cboe UK Consumer on September 13, 2024 and sell it today you would earn a total of 229,646 from holding Cboe UK Consumer or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Cboe UK Consumer
Performance |
| Timeline |
Gaztransport and Cboe UK Volatility Contrast
Predicted Return Density |
| Returns |
Gaztransport et Technigaz
Pair trading matchups for Gaztransport
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with Gaztransport and Cboe UK
The main advantage of trading using opposite Gaztransport and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.| Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Hyundai Motor | Gaztransport vs. Reliance Industries Ltd |
| Cboe UK vs. Tata Steel Limited | Cboe UK vs. Vitec Software Group | Cboe UK vs. Wyndham Hotels Resorts | Cboe UK vs. Impax Environmental Markets |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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