Correlation Between CITY OFFICE and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE 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 CITY OFFICE and Gaztransport Technigaz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and Gaztransport Technigaz SA, you can compare the effects of market volatilities on CITY OFFICE 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 CITY OFFICE with a short position of Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and Gaztransport Technigaz.
Diversification Opportunities for CITY OFFICE and Gaztransport Technigaz
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITY and Gaztransport is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz and CITY OFFICE 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 CITY OFFICE REIT 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 CITY OFFICE i.e., CITY OFFICE and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between CITY OFFICE and Gaztransport Technigaz
Assuming the 90 days horizon CITY OFFICE REIT is expected to generate 1.92 times more return on investment than Gaztransport Technigaz. However, CITY OFFICE is 1.92 times more volatile than Gaztransport Technigaz SA. It trades about 0.06 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 488.00 in CITY OFFICE REIT on September 24, 2024 and sell it today you would earn a total of 17.00 from holding CITY OFFICE REIT or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. Gaztransport Technigaz SA
Performance |
| Timeline |
| CITY OFFICE REIT |
| Gaztransport Technigaz |
CITY OFFICE and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and Gaztransport Technigaz
The main advantage of trading using opposite CITY OFFICE and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE 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.| CITY OFFICE vs. ECHO INVESTMENT ZY | CITY OFFICE vs. PUBLIC STORAGE PRFO | CITY OFFICE vs. DATANG INTL POW | CITY OFFICE vs. Hyrican Informationssysteme Aktiengesellschaft |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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