Correlation Between Coor Service and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Coor Service and Gaztransport 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 Coor Service and Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coor Service Management and Gaztransport et Technigaz, you can compare the effects of market volatilities on Coor Service and Gaztransport 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 Coor Service with a short position of Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coor Service and Gaztransport.
Diversification Opportunities for Coor Service and Gaztransport
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coor and Gaztransport is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Coor Service Management and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz and Coor Service 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 Coor Service Management are associated (or correlated) with Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Coor Service i.e., Coor Service and Gaztransport go up and down completely randomly.
Pair Corralation between Coor Service and Gaztransport
Assuming the 90 days trading horizon Coor Service Management is expected to under-perform the Gaztransport. In addition to that, Coor Service is 1.34 times more volatile than Gaztransport et Technigaz. It trades about -0.01 of its total potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.05 per unit of volatility. If you would invest 11,540 in Gaztransport et Technigaz on September 1, 2024 and sell it today you would earn a total of 2,250 from holding Gaztransport et Technigaz or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coor Service Management vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Coor Service Management |
| Gaztransport et Technigaz |
Coor Service and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coor Service and Gaztransport
The main advantage of trading using opposite Coor Service and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coor Service position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Coor Service vs. Uniper SE | Coor Service vs. Mulberry Group PLC | Coor Service vs. London Security Plc | Coor Service vs. Triad Group PLC |
| Gaztransport vs. Uniper SE | Gaztransport vs. Mulberry Group PLC | Gaztransport vs. London Security Plc | Gaztransport vs. Triad Group PLC |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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