Correlation Between Gaztransport Technigaz and Corporate Travel
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Corporate Travel 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 Gaztransport Technigaz and Corporate Travel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SA and Corporate Travel Management, you can compare the effects of market volatilities on Gaztransport Technigaz and Corporate Travel 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 Gaztransport Technigaz with a short position of Corporate Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Corporate Travel.
Diversification Opportunities for Gaztransport Technigaz and Corporate Travel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Corporate is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Corporate Travel Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Travel Man and Gaztransport Technigaz 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 Gaztransport Technigaz SA are associated (or correlated) with Corporate Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Travel Man has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Corporate Travel go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Corporate Travel
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.57 times less return on investment than Corporate Travel. In addition to that, Gaztransport Technigaz is 1.23 times more volatile than Corporate Travel Management. It trades about 0.07 of its total potential returns per unit of risk. Corporate Travel Management is currently generating about 0.13 per unit of volatility. If you would invest 865.00 in Corporate Travel Management on December 5, 2024 and sell it today you would earn a total of 70.00 from holding Corporate Travel Management or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Corporate Travel Management
Performance |
| Timeline |
| Gaztransport Technigaz |
| Corporate Travel Man |
Gaztransport Technigaz and Corporate Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Corporate Travel
The main advantage of trading using opposite Gaztransport Technigaz and Corporate Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Corporate Travel 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 Corporate Travel will offset losses from the drop in Corporate Travel's long position.| Gaztransport Technigaz vs. TROPHY GAMES DEV | Gaztransport Technigaz vs. GAMING FAC SA | Gaztransport Technigaz vs. Taiwan Semiconductor Manufacturing | Gaztransport Technigaz vs. PLAYMATES TOYS |
| Corporate Travel vs. Chengdu PUTIAN Telecommunications | Corporate Travel vs. New Residential Investment | Corporate Travel vs. SLR Investment Corp | Corporate Travel vs. Infrastrutture Wireless Italiane |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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