Correlation Between Gaztransport Technigaz and Metro AG
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Metro AG 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 Metro AG 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 Metro AG, you can compare the effects of market volatilities on Gaztransport Technigaz and Metro AG 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 Metro AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Metro AG.
Diversification Opportunities for Gaztransport Technigaz and Metro AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Metro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Metro AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro AG 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 Metro AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro AG has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Metro AG go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Metro AG
If you would invest 12,980 in Gaztransport Technigaz SA on October 29, 2024 and sell it today you would earn a total of 1,850 from holding Gaztransport Technigaz SA or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Metro AG
Performance |
| Timeline |
| Gaztransport Technigaz |
| Metro AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gaztransport Technigaz and Metro AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Metro AG
The main advantage of trading using opposite Gaztransport Technigaz and Metro AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Metro AG 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 Metro AG will offset losses from the drop in Metro AG's long position.| Gaztransport Technigaz vs. JLF INVESTMENT | Gaztransport Technigaz vs. SLR Investment Corp | Gaztransport Technigaz vs. AOYAMA TRADING | Gaztransport Technigaz vs. Singapore Airlines Limited |
| Metro AG vs. FUYO GENERAL LEASE | Metro AG vs. Lendlease Group | Metro AG vs. ALBIS LEASING AG | Metro AG vs. GOME Retail Holdings |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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