Correlation Between CREO MEDICAL and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and Gaztransport Technigaz 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 CREO MEDICAL and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREO MEDICAL GRP and Gaztransport Technigaz SA, you can compare the effects of market volatilities on CREO MEDICAL and Gaztransport Technigaz 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 CREO MEDICAL with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and Gaztransport Technigaz.
Diversification Opportunities for CREO MEDICAL and Gaztransport Technigaz
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CREO and Gaztransport is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and CREO MEDICAL 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 CREO MEDICAL GRP are associated (or correlated) with Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between CREO MEDICAL and Gaztransport Technigaz
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the Gaztransport Technigaz. In addition to that, CREO MEDICAL is 2.31 times more volatile than Gaztransport Technigaz SA. It trades about -0.13 of its total potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about 0.33 per unit of volatility. If you would invest 13,710 in Gaztransport Technigaz SA on November 8, 2024 and sell it today you would earn a total of 1,330 from holding Gaztransport Technigaz SA or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| CREO MEDICAL GRP |
| Gaztransport Technigaz |
CREO MEDICAL and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and Gaztransport Technigaz
The main advantage of trading using opposite CREO MEDICAL and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, Gaztransport Technigaz 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 Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| CREO MEDICAL vs. WESANA HEALTH HOLD | CREO MEDICAL vs. MACOM Technology Solutions | CREO MEDICAL vs. Firan Technology Group | CREO MEDICAL vs. Universal Health Realty |
| Gaztransport Technigaz vs. GAMES OPERATORS SA | Gaztransport Technigaz vs. GameStop Corp | Gaztransport Technigaz vs. UPDATE SOFTWARE | Gaztransport Technigaz vs. Firan Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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