Correlation Between Gaztransport Technigaz and SCANDION ONC
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and SCANDION ONC 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 SCANDION ONC 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 SCANDION ONC DK 0735, you can compare the effects of market volatilities on Gaztransport Technigaz and SCANDION ONC 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 SCANDION ONC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and SCANDION ONC.
Diversification Opportunities for Gaztransport Technigaz and SCANDION ONC
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and SCANDION is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and SCANDION ONC DK 0735 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDION ONC DK 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 SCANDION ONC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDION ONC DK has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and SCANDION ONC go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and SCANDION ONC
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.13 times more return on investment than SCANDION ONC. However, Gaztransport Technigaz SA is 7.89 times less risky than SCANDION ONC. It trades about 0.07 of its potential returns per unit of risk. SCANDION ONC DK 0735 is currently generating about 0.0 per unit of risk. If you would invest 8,852 in Gaztransport Technigaz SA on October 28, 2024 and sell it today you would earn a total of 5,978 from holding Gaztransport Technigaz SA or generate 67.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. SCANDION ONC DK 0735
Performance |
| Timeline |
| Gaztransport Technigaz |
| SCANDION ONC DK |
Gaztransport Technigaz and SCANDION ONC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and SCANDION ONC
The main advantage of trading using opposite Gaztransport Technigaz and SCANDION ONC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, SCANDION ONC 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 SCANDION ONC will offset losses from the drop in SCANDION ONC's long position.| Gaztransport Technigaz vs. ALTAIR RES INC | Gaztransport Technigaz vs. CVW CLEANTECH INC | Gaztransport Technigaz vs. Ryanair Holdings plc | Gaztransport Technigaz vs. Carnegie Clean Energy |
| SCANDION ONC vs. Reinsurance Group of | SCANDION ONC vs. TIANDE CHEMICAL | SCANDION ONC vs. The Hanover Insurance | SCANDION ONC vs. Goosehead Insurance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets |