Correlation Between Gaztransport and State Bank
Can any of the company-specific risk be diversified away by investing in both Gaztransport and State Bank 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 State Bank 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 State Bank of, you can compare the effects of market volatilities on Gaztransport and State Bank 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 State Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and State Bank.
Diversification Opportunities for Gaztransport and State Bank
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and State is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and State Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Bank 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 State Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Bank has no effect on the direction of Gaztransport i.e., Gaztransport and State Bank go up and down completely randomly.
Pair Corralation between Gaztransport and State Bank
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.97 times more return on investment than State Bank. However, Gaztransport et Technigaz is 1.03 times less risky than State Bank. It trades about 0.4 of its potential returns per unit of risk. State Bank of is currently generating about -0.21 per unit of risk. If you would invest 12,943 in Gaztransport et Technigaz on October 30, 2024 and sell it today you would earn a total of 1,587 from holding Gaztransport et Technigaz or generate 12.26% 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. State Bank of
Performance |
| Timeline |
| Gaztransport et Technigaz |
| State Bank |
Gaztransport and State Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and State Bank
The main advantage of trading using opposite Gaztransport and State Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, State Bank 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 State Bank will offset losses from the drop in State Bank's long position.| Gaztransport vs. Vulcan Materials Co | Gaztransport vs. Eastinco Mining Exploration | Gaztransport vs. Adriatic Metals | Gaztransport vs. Cornish Metals |
| State Bank vs. Ryanair Holdings plc | State Bank vs. Samsung Electronics Co | State Bank vs. Evolution Gaming Group | State Bank vs. Automatic Data Processing |
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.
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