Correlation Between Gaztransport and DB Physical
Can any of the company-specific risk be diversified away by investing in both Gaztransport and DB Physical 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 DB Physical 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 DB Physical Gold, you can compare the effects of market volatilities on Gaztransport and DB Physical 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 DB Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and DB Physical.
Diversification Opportunities for Gaztransport and DB Physical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and XGLS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and DB Physical Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Physical Gold 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 DB Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Physical Gold has no effect on the direction of Gaztransport i.e., Gaztransport and DB Physical go up and down completely randomly.
Pair Corralation between Gaztransport and DB Physical
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to under-perform the DB Physical. In addition to that, Gaztransport is 1.63 times more volatile than DB Physical Gold. It trades about -0.14 of its total potential returns per unit of risk. DB Physical Gold is currently generating about 0.32 per unit of volatility. If you would invest 154,775 in DB Physical Gold on January 22, 2025 and sell it today you would earn a total of 14,450 from holding DB Physical Gold or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. DB Physical Gold
Performance |
| Timeline |
| Gaztransport et Technigaz |
| DB Physical Gold |
Gaztransport and DB Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and DB Physical
The main advantage of trading using opposite Gaztransport and DB Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport position performs unexpectedly, DB Physical 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 DB Physical will offset losses from the drop in DB Physical's long position.| Gaztransport vs. Bytes Technology | Gaztransport vs. Take Two Interactive Software | Gaztransport vs. PureTech Health plc | Gaztransport vs. GoldMining |
| DB Physical vs. Invesco Physical Gold | DB Physical vs. Xtrackers Physical Gold | DB Physical vs. Invesco Physical Gold | DB Physical vs. Amundi Physical Gold |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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