Correlation Between MOBILE FACTORY and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY 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 MOBILE FACTORY and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and Gaztransport Technigaz SA, you can compare the effects of market volatilities on MOBILE FACTORY 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 MOBILE FACTORY with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and Gaztransport Technigaz.
Diversification Opportunities for MOBILE FACTORY and Gaztransport Technigaz
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOBILE and Gaztransport is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and MOBILE FACTORY 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 MOBILE FACTORY INC 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 MOBILE FACTORY i.e., MOBILE FACTORY and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and Gaztransport Technigaz
Assuming the 90 days horizon MOBILE FACTORY INC is expected to under-perform the Gaztransport Technigaz. But the stock apears to be less risky and, when comparing its historical volatility, MOBILE FACTORY INC is 1.47 times less risky than Gaztransport Technigaz. The stock trades about -0.07 of its potential returns per unit of risk. The Gaztransport Technigaz SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 13,240 in Gaztransport Technigaz SA on October 14, 2024 and sell it today you would earn a total of 830.00 from holding Gaztransport Technigaz SA or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| MOBILE FACTORY INC |
| Gaztransport Technigaz |
MOBILE FACTORY and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and Gaztransport Technigaz
The main advantage of trading using opposite MOBILE FACTORY and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY 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.| MOBILE FACTORY vs. Linedata Services SA | MOBILE FACTORY vs. Scottish Mortgage Investment | MOBILE FACTORY vs. Guangdong Investment Limited | MOBILE FACTORY vs. Alliance Data Systems |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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