Correlation Between Gaztransport Technigaz and Gestamp Automocin
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Gestamp Automocin 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 Gestamp Automocin 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 Gestamp Automocin SA, you can compare the effects of market volatilities on Gaztransport Technigaz and Gestamp Automocin 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 Gestamp Automocin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Gestamp Automocin.
Diversification Opportunities for Gaztransport Technigaz and Gestamp Automocin
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gaztransport and Gestamp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Gestamp Automocin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gestamp Automocin 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 Gestamp Automocin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gestamp Automocin has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Gestamp Automocin go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Gestamp Automocin
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.71 times more return on investment than Gestamp Automocin. However, Gaztransport Technigaz SA is 1.41 times less risky than Gestamp Automocin. It trades about 0.11 of its potential returns per unit of risk. Gestamp Automocin SA is currently generating about -0.1 per unit of risk. If you would invest 13,300 in Gaztransport Technigaz SA on September 4, 2024 and sell it today you would earn a total of 460.00 from holding Gaztransport Technigaz SA or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Gestamp Automocin SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Gestamp Automocin |
Gaztransport Technigaz and Gestamp Automocin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Gestamp Automocin
The main advantage of trading using opposite Gaztransport Technigaz and Gestamp Automocin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Gestamp Automocin 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 Gestamp Automocin will offset losses from the drop in Gestamp Automocin's long position.| Gaztransport Technigaz vs. OAKTRSPECLENDNEW | Gaztransport Technigaz vs. DICKS Sporting Goods | Gaztransport Technigaz vs. BANKINTER ADR 2007 | Gaztransport Technigaz vs. Ameriprise Financial |
| Gestamp Automocin vs. Gold Road Resources | Gestamp Automocin vs. Gaztransport Technigaz SA | Gestamp Automocin vs. Broadwind | Gestamp Automocin vs. Commonwealth Bank of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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