Correlation Between Gaztransport and Symphony Environmental
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Symphony Environmental 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 Symphony Environmental 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 Symphony Environmental Technologies, you can compare the effects of market volatilities on Gaztransport and Symphony Environmental 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 Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Symphony Environmental.
Diversification Opportunities for Gaztransport and Symphony Environmental
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Symphony is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental 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 Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of Gaztransport i.e., Gaztransport and Symphony Environmental go up and down completely randomly.
Pair Corralation between Gaztransport and Symphony Environmental
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.52 times more return on investment than Symphony Environmental. However, Gaztransport et Technigaz is 1.94 times less risky than Symphony Environmental. It trades about -0.01 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about -0.13 per unit of risk. If you would invest 12,784 in Gaztransport et Technigaz on September 25, 2024 and sell it today you would lose (89.00) from holding Gaztransport et Technigaz or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Symphony Environmental Technol
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Symphony Environmental |
Gaztransport and Symphony Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Symphony Environmental
The main advantage of trading using opposite Gaztransport and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental's long position.| Gaztransport vs. Uniper SE | Gaztransport vs. Mulberry Group PLC | Gaztransport vs. London Security Plc | Gaztransport vs. Triad Group PLC |
| Symphony Environmental vs. Solstad Offshore ASA | Symphony Environmental vs. Supermarket Income REIT | Symphony Environmental vs. Gaztransport et Technigaz | Symphony Environmental vs. Broadcom |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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