Correlation Between Gaztransport Technigaz and Western Copper
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Western Copper 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 Western Copper 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 Western Copper and, you can compare the effects of market volatilities on Gaztransport Technigaz and Western Copper 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 Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Western Copper.
Diversification Opportunities for Gaztransport Technigaz and Western Copper
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaztransport and Western is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper 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 Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Western Copper go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Western Copper
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.93 times more return on investment than Western Copper. However, Gaztransport Technigaz SA is 1.07 times less risky than Western Copper. It trades about 0.16 of its potential returns per unit of risk. Western Copper and is currently generating about 0.04 per unit of risk. If you would invest 13,140 in Gaztransport Technigaz SA on October 13, 2024 and sell it today you would earn a total of 710.00 from holding Gaztransport Technigaz SA or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Western Copper and
Performance |
| Timeline |
| Gaztransport Technigaz |
| Western Copper |
Gaztransport Technigaz and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Western Copper
The main advantage of trading using opposite Gaztransport Technigaz and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.The idea behind Gaztransport Technigaz SA and Western Copper and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Western Copper vs. Xiwang Special Steel | Western Copper vs. United States Steel | Western Copper vs. RELIANCE STEEL AL | Western Copper vs. SALESFORCE INC CDR |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |