Correlation Between Gaztransport Technigaz and Townsquare Media
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Townsquare Media 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 Townsquare Media 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 Townsquare Media, you can compare the effects of market volatilities on Gaztransport Technigaz and Townsquare Media 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 Townsquare Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Townsquare Media.
Diversification Opportunities for Gaztransport Technigaz and Townsquare Media
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Townsquare is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media 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 Townsquare Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Townsquare Media has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Townsquare Media go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Townsquare Media
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.27 times less return on investment than Townsquare Media. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 1.4 times less risky than Townsquare Media. It trades about 0.05 of its potential returns per unit of risk. Townsquare Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 603.00 in Townsquare Media on August 24, 2024 and sell it today you would earn a total of 297.00 from holding Townsquare Media or generate 49.25% 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. Townsquare Media
Performance |
| Timeline |
| Gaztransport Technigaz |
| Townsquare Media |
Gaztransport Technigaz and Townsquare Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Townsquare Media
The main advantage of trading using opposite Gaztransport Technigaz and Townsquare Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Townsquare Media 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 Townsquare Media will offset losses from the drop in Townsquare Media's long position.| Gaztransport Technigaz vs. TITANIUM TRANSPORTGROUP | Gaztransport Technigaz vs. Haier Smart Home | Gaztransport Technigaz vs. Aedas Homes SA | Gaztransport Technigaz vs. Gold Road Resources |
| Townsquare Media vs. Beasley Broadcast Group | Townsquare Media vs. Xtrackers ShortDAX | Townsquare Media vs. Lyxor 1 | Townsquare Media vs. Xtrackers LevDAX |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |