Correlation Between Gaztransport Technigaz and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and MEDICAL FACILITIES 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 MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Gaztransport Technigaz and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and MEDICAL FACILITIES.
Diversification Opportunities for Gaztransport Technigaz and MEDICAL FACILITIES
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gaztransport and MEDICAL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and MEDICAL FACILITIES
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.53 times less return on investment than MEDICAL FACILITIES. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 1.4 times less risky than MEDICAL FACILITIES. It trades about 0.07 of its potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 528.00 in MEDICAL FACILITIES NEW on November 27, 2024 and sell it today you would earn a total of 622.00 from holding MEDICAL FACILITIES NEW or generate 117.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Gaztransport Technigaz |
| MEDICAL FACILITIES NEW |
Gaztransport Technigaz and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and MEDICAL FACILITIES
The main advantage of trading using opposite Gaztransport Technigaz and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Gaztransport Technigaz vs. Wyndham Hotels Resorts | Gaztransport Technigaz vs. China Resources Beer | Gaztransport Technigaz vs. National Beverage Corp | Gaztransport Technigaz vs. Playa Hotels Resorts |
| MEDICAL FACILITIES vs. CAREER EDUCATION | MEDICAL FACILITIES vs. Acadia Healthcare Co | MEDICAL FACILITIES vs. PURETECH HEALTH PLC | MEDICAL FACILITIES vs. DeVry Education Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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