Correlation Between Kaufman Broad and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Kaufman Broad 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 Kaufman Broad and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaufman Broad SA and Gaztransport Technigaz SA, you can compare the effects of market volatilities on Kaufman Broad 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 Kaufman Broad with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaufman Broad and Gaztransport Technigaz.
Diversification Opportunities for Kaufman Broad and Gaztransport Technigaz
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaufman and Gaztransport is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kaufman Broad SA and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Kaufman Broad 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 Kaufman Broad SA 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 Kaufman Broad i.e., Kaufman Broad and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Kaufman Broad and Gaztransport Technigaz
Assuming the 90 days horizon Kaufman Broad SA is expected to generate 0.81 times more return on investment than Gaztransport Technigaz. However, Kaufman Broad SA is 1.23 times less risky than Gaztransport Technigaz. It trades about 0.03 of its potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about -0.2 per unit of risk. If you would invest 3,175 in Kaufman Broad SA on September 24, 2024 and sell it today you would earn a total of 25.00 from holding Kaufman Broad SA or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaufman Broad SA vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| Kaufman Broad SA |
| Gaztransport Technigaz |
Kaufman Broad and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaufman Broad and Gaztransport Technigaz
The main advantage of trading using opposite Kaufman Broad and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaufman Broad 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.| Kaufman Broad vs. OURGAME INTHOLDL 00005 | Kaufman Broad vs. TROPHY GAMES DEV | Kaufman Broad vs. URBAN OUTFITTERS | Kaufman Broad vs. GigaMedia |
| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |