Correlation Between Gaztransport and Primary Health
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Primary Health 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 Primary Health 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 Primary Health Properties, you can compare the effects of market volatilities on Gaztransport and Primary Health 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 Primary Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Primary Health.
Diversification Opportunities for Gaztransport and Primary Health
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and Primary is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Primary Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primary Health Properties 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 Primary Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primary Health Properties has no effect on the direction of Gaztransport i.e., Gaztransport and Primary Health go up and down completely randomly.
Pair Corralation between Gaztransport and Primary Health
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 1.44 times more return on investment than Primary Health. However, Gaztransport is 1.44 times more volatile than Primary Health Properties. It trades about 0.21 of its potential returns per unit of risk. Primary Health Properties is currently generating about -0.2 per unit of risk. If you would invest 13,300 in Gaztransport et Technigaz on October 11, 2024 and sell it today you would earn a total of 870.00 from holding Gaztransport et Technigaz or generate 6.54% 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. Primary Health Properties
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Primary Health Properties |
Gaztransport and Primary Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Primary Health
The main advantage of trading using opposite Gaztransport and Primary Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Primary Health 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 Primary Health will offset losses from the drop in Primary Health's long position.| Gaztransport vs. Caledonia Investments | Gaztransport vs. Livermore Investments Group | Gaztransport vs. Power Metal Resources | Gaztransport vs. Europa Metals |
| Primary Health vs. First Majestic Silver | Primary Health vs. Gaztransport et Technigaz | Primary Health vs. Eastinco Mining Exploration | Primary Health vs. Endeavour Mining Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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