Correlation Between Granite 3x and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Granite 3x 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 Granite 3x and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Granite 3x LVMH and Gaztransport Technigaz SAS, you can compare the effects of market volatilities on Granite 3x 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 Granite 3x with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Granite 3x and Gaztransport Technigaz.
Diversification Opportunities for Granite 3x and Gaztransport Technigaz
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Granite and Gaztransport is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Granite 3x LVMH and Gaztransport Technigaz SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and Granite 3x 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 Granite 3x LVMH 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 Granite 3x i.e., Granite 3x and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Granite 3x and Gaztransport Technigaz
Assuming the 90 days trading horizon Granite 3x LVMH is expected to under-perform the Gaztransport Technigaz. In addition to that, Granite 3x is 3.58 times more volatile than Gaztransport Technigaz SAS. It trades about -0.02 of its total potential returns per unit of risk. Gaztransport Technigaz SAS is currently generating about 0.05 per unit of volatility. If you would invest 9,551 in Gaztransport Technigaz SAS on August 30, 2024 and sell it today you would earn a total of 4,399 from holding Gaztransport Technigaz SAS or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.63% |
| Values | Daily Returns |
Granite 3x LVMH vs. Gaztransport Technigaz SAS
Performance |
| Timeline |
| Granite 3x LVMH |
| Gaztransport Technigaz |
Granite 3x and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Granite 3x and Gaztransport Technigaz
The main advantage of trading using opposite Granite 3x and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Granite 3x 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.| Granite 3x vs. Lyxor UCITS Japan | Granite 3x vs. Lyxor UCITS Japan | Granite 3x vs. Lyxor UCITS Stoxx | Granite 3x vs. Amundi CAC 40 |
| Gaztransport Technigaz vs. Rubis SCA | Gaztransport Technigaz vs. Teleperformance SE | Gaztransport Technigaz vs. Sartorius Stedim Biotech | Gaztransport Technigaz vs. Nexity |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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