Correlation Between Gaztransport and Secure Property
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Secure Property 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 Secure Property 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 Secure Property Development, you can compare the effects of market volatilities on Gaztransport and Secure Property 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 Secure Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Secure Property.
Diversification Opportunities for Gaztransport and Secure Property
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaztransport and Secure is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve 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 Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of Gaztransport i.e., Gaztransport and Secure Property go up and down completely randomly.
Pair Corralation between Gaztransport and Secure Property
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 1.17 times more return on investment than Secure Property. However, Gaztransport is 1.17 times more volatile than Secure Property Development. It trades about 0.05 of its potential returns per unit of risk. Secure Property Development is currently generating about -0.03 per unit of risk. If you would invest 9,304 in Gaztransport et Technigaz on September 13, 2024 and sell it today you would earn a total of 3,996 from holding Gaztransport et Technigaz or generate 42.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Secure Property Development
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Secure Property Deve |
Gaztransport and Secure Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Secure Property
The main advantage of trading using opposite Gaztransport and Secure Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Secure Property 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 Secure Property will offset losses from the drop in Secure Property's long position.| Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Hyundai Motor | Gaztransport vs. Reliance Industries Ltd |
| Secure Property vs. Europa Metals | Secure Property vs. Associated British Foods | Secure Property vs. Gaztransport et Technigaz | Secure Property vs. Wheaton Precious Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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