Correlation Between Gaztransport Technigaz and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on Gaztransport Technigaz and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Haier Smart.
Diversification Opportunities for Gaztransport Technigaz and Haier Smart
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gaztransport and Haier is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Haier Smart go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Haier Smart
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.19 times more return on investment than Haier Smart. However, Gaztransport Technigaz is 1.19 times more volatile than Haier Smart Home. It trades about 0.18 of its potential returns per unit of risk. Haier Smart Home is currently generating about -0.08 per unit of risk. If you would invest 13,250 in Gaztransport Technigaz SA on August 28, 2024 and sell it today you would earn a total of 890.00 from holding Gaztransport Technigaz SA or generate 6.72% 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. Haier Smart Home
Performance |
| Timeline |
| Gaztransport Technigaz |
| Haier Smart Home |
Gaztransport Technigaz and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Haier Smart
The main advantage of trading using opposite Gaztransport Technigaz and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Gaztransport Technigaz vs. CompuGroup Medical SE | Gaztransport Technigaz vs. Apollo Medical Holdings | Gaztransport Technigaz vs. Clearside Biomedical | Gaztransport Technigaz vs. MEDICAL FACILITIES NEW |
| Haier Smart vs. Commercial Vehicle Group | Haier Smart vs. CARSALESCOM | Haier Smart vs. DELTA AIR LINES | Haier Smart vs. ALTAIR RES INC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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