Correlation Between Gaztransport Technigaz and Pure Storage
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Pure Storage 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 Pure Storage 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 Pure Storage, you can compare the effects of market volatilities on Gaztransport Technigaz and Pure Storage 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 Pure Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Pure Storage.
Diversification Opportunities for Gaztransport Technigaz and Pure Storage
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Pure is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Pure Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage 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 Pure Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Pure Storage go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Pure Storage
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.52 times more return on investment than Pure Storage. However, Gaztransport Technigaz SA is 1.93 times less risky than Pure Storage. It trades about 0.08 of its potential returns per unit of risk. Pure Storage is currently generating about -0.01 per unit of risk. If you would invest 13,120 in Gaztransport Technigaz SA on August 28, 2024 and sell it today you would earn a total of 1,020 from holding Gaztransport Technigaz SA or generate 7.77% 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. Pure Storage
Performance |
| Timeline |
| Gaztransport Technigaz |
| Pure Storage |
Gaztransport Technigaz and Pure Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Pure Storage
The main advantage of trading using opposite Gaztransport Technigaz and Pure Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Pure Storage 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 Pure Storage will offset losses from the drop in Pure Storage'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 |
| Pure Storage vs. United Utilities Group | Pure Storage vs. MOLSON RS BEVERAGE | Pure Storage vs. GungHo Online Entertainment | Pure Storage vs. Canadian Utilities Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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