Correlation Between Gaztransport and Tetragon Financial
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Tetragon Financial 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 Tetragon Financial 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 Tetragon Financial Group, you can compare the effects of market volatilities on Gaztransport and Tetragon Financial 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 Tetragon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Tetragon Financial.
Diversification Opportunities for Gaztransport and Tetragon Financial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Tetragon is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Tetragon Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tetragon Financial 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 Tetragon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tetragon Financial has no effect on the direction of Gaztransport i.e., Gaztransport and Tetragon Financial go up and down completely randomly.
Pair Corralation between Gaztransport and Tetragon Financial
Assuming the 90 days trading horizon Gaztransport is expected to generate 4.28 times less return on investment than Tetragon Financial. But when comparing it to its historical volatility, Gaztransport et Technigaz is 1.08 times less risky than Tetragon Financial. It trades about 0.06 of its potential returns per unit of risk. Tetragon Financial Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 996.00 in Tetragon Financial Group on October 25, 2024 and sell it today you would earn a total of 654.00 from holding Tetragon Financial Group or generate 65.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Tetragon Financial Group
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Tetragon Financial |
Gaztransport and Tetragon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Tetragon Financial
The main advantage of trading using opposite Gaztransport and Tetragon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Tetragon Financial 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 Tetragon Financial will offset losses from the drop in Tetragon Financial's long position.| Gaztransport vs. Omega Healthcare Investors | Gaztransport vs. Associated British Foods | Gaztransport vs. Cardinal Health | Gaztransport vs. National Beverage Corp |
| Tetragon Financial vs. Griffin Mining | Tetragon Financial vs. Pan American Silver | Tetragon Financial vs. Summit Materials Cl | Tetragon Financial vs. Atalaya Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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