Correlation Between Gaztransport Technigaz and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on Gaztransport Technigaz and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and ANTA SPORTS.
Diversification Opportunities for Gaztransport Technigaz and ANTA SPORTS
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gaztransport and ANTA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and ANTA SPORTS go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and ANTA SPORTS
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.81 times more return on investment than ANTA SPORTS. However, Gaztransport Technigaz SA is 1.24 times less risky than ANTA SPORTS. It trades about 0.19 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about -0.12 per unit of risk. If you would invest 13,230 in Gaztransport Technigaz SA on August 25, 2024 and sell it today you would earn a total of 950.00 from holding Gaztransport Technigaz SA or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| Gaztransport Technigaz |
| ANTA SPORTS PRODUCT |
Gaztransport Technigaz and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and ANTA SPORTS
The main advantage of trading using opposite Gaztransport Technigaz and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| Gaztransport Technigaz vs. TITANIUM TRANSPORTGROUP | Gaztransport Technigaz vs. Haier Smart Home | Gaztransport Technigaz vs. Aedas Homes SA | Gaztransport Technigaz vs. Gold Road Resources |
| ANTA SPORTS vs. ALTAIR RES INC | ANTA SPORTS vs. Alaska Air Group | ANTA SPORTS vs. Ryanair Holdings plc | ANTA SPORTS vs. Westinghouse Air Brake |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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