Correlation Between Gaztransport Technigaz and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and VARIOUS EATERIES 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS, you can compare the effects of market volatilities on Gaztransport Technigaz and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and VARIOUS EATERIES.
Diversification Opportunities for Gaztransport Technigaz and VARIOUS EATERIES
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and VARIOUS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and VARIOUS EATERIES
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.73 times more return on investment than VARIOUS EATERIES. However, Gaztransport Technigaz SA is 1.37 times less risky than VARIOUS EATERIES. It trades about 0.04 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.03 per unit of risk. If you would invest 9,894 in Gaztransport Technigaz SA on September 5, 2024 and sell it today you would earn a total of 3,306 from holding Gaztransport Technigaz SA or generate 33.41% 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. VARIOUS EATERIES LS
Performance |
| Timeline |
| Gaztransport Technigaz |
| VARIOUS EATERIES |
Gaztransport Technigaz and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and VARIOUS EATERIES
The main advantage of trading using opposite Gaztransport Technigaz and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | Gaztransport Technigaz vs. Origin Agritech | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| VARIOUS EATERIES vs. CarsalesCom | VARIOUS EATERIES vs. Gaztransport Technigaz SA | VARIOUS EATERIES vs. BII Railway Transportation | VARIOUS EATERIES vs. QUEEN S ROAD |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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