Correlation Between Gaztransport and Worldwide Healthcare
Can any of the company-specific risk be diversified away by investing in both Gaztransport and Worldwide Healthcare 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 Worldwide Healthcare 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 Worldwide Healthcare Trust, you can compare the effects of market volatilities on Gaztransport and Worldwide Healthcare 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 Worldwide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Worldwide Healthcare.
Diversification Opportunities for Gaztransport and Worldwide Healthcare
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Worldwide is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Worldwide Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldwide Healthcare 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 Worldwide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldwide Healthcare has no effect on the direction of Gaztransport i.e., Gaztransport and Worldwide Healthcare go up and down completely randomly.
Pair Corralation between Gaztransport and Worldwide Healthcare
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 1.51 times more return on investment than Worldwide Healthcare. However, Gaztransport is 1.51 times more volatile than Worldwide Healthcare Trust. It trades about 0.21 of its potential returns per unit of risk. Worldwide Healthcare Trust is currently generating about -0.07 per unit of risk. If you would invest 13,290 in Gaztransport et Technigaz on October 12, 2024 and sell it today you would earn a total of 880.00 from holding Gaztransport et Technigaz or generate 6.62% 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. Worldwide Healthcare Trust
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Worldwide Healthcare |
Gaztransport and Worldwide Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Worldwide Healthcare
The main advantage of trading using opposite Gaztransport and Worldwide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, Worldwide Healthcare 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 Worldwide Healthcare will offset losses from the drop in Worldwide Healthcare's long position.| Gaztransport vs. Solstad Offshore ASA | Gaztransport vs. Zegona Communications Plc | Gaztransport vs. SBM Offshore NV | Gaztransport vs. Mineral Financial Investments |
| Worldwide Healthcare vs. Impax Asset Management | Worldwide Healthcare vs. Waste Management | Worldwide Healthcare vs. Gaztransport et Technigaz | Worldwide Healthcare vs. Spire Healthcare Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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