Correlation Between Gaztransport Technigaz and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and SHIP HEALTHCARE 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 SHIP HEALTHCARE 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 SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on Gaztransport Technigaz and SHIP HEALTHCARE 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 SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and SHIP HEALTHCARE.
Diversification Opportunities for Gaztransport Technigaz and SHIP HEALTHCARE
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and SHIP is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC 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 SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and SHIP HEALTHCARE
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 2.59 times more return on investment than SHIP HEALTHCARE. However, Gaztransport Technigaz is 2.59 times more volatile than SHIP HEALTHCARE HLDGINC. It trades about 0.13 of its potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about -0.28 per unit of risk. If you would invest 14,530 in Gaztransport Technigaz SA on November 27, 2024 and sell it today you would earn a total of 1,270 from holding Gaztransport Technigaz SA or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| Gaztransport Technigaz |
| SHIP HEALTHCARE HLDGINC |
Gaztransport Technigaz and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and SHIP HEALTHCARE
The main advantage of trading using opposite Gaztransport Technigaz and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, SHIP HEALTHCARE 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE'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 |
| SHIP HEALTHCARE vs. Air Transport Services | SHIP HEALTHCARE vs. AEON METALS LTD | SHIP HEALTHCARE vs. DAIDO METAL TD | SHIP HEALTHCARE vs. Jupiter Fund Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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