Correlation Between Gaztransport Technigaz and MOBILE FACTORY
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and MOBILE FACTORY 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 MOBILE FACTORY 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 MOBILE FACTORY INC, you can compare the effects of market volatilities on Gaztransport Technigaz and MOBILE FACTORY 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 MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and MOBILE FACTORY.
Diversification Opportunities for Gaztransport Technigaz and MOBILE FACTORY
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and MOBILE is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY INC 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 MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and MOBILE FACTORY go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and MOBILE FACTORY
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.47 times more return on investment than MOBILE FACTORY. However, Gaztransport Technigaz is 1.47 times more volatile than MOBILE FACTORY INC. It trades about 0.18 of its potential returns per unit of risk. MOBILE FACTORY INC is currently generating about -0.07 per unit of risk. 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 |
Gaztransport Technigaz SA vs. MOBILE FACTORY INC
Performance |
| Timeline |
| Gaztransport Technigaz |
| MOBILE FACTORY INC |
Gaztransport Technigaz and MOBILE FACTORY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and MOBILE FACTORY
The main advantage of trading using opposite Gaztransport Technigaz and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.| Gaztransport Technigaz vs. Yanzhou Coal Mining | Gaztransport Technigaz vs. NURAN WIRELESS INC | Gaztransport Technigaz vs. BJs Restaurants | Gaztransport Technigaz vs. Darden Restaurants |
| MOBILE FACTORY vs. Linedata Services SA | MOBILE FACTORY vs. Scottish Mortgage Investment | MOBILE FACTORY vs. Guangdong Investment Limited | MOBILE FACTORY vs. Alliance Data Systems |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |