Correlation Between Gaztransport Technigaz and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Consolidated Communications 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 Consolidated Communications 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 Consolidated Communications Holdings, you can compare the effects of market volatilities on Gaztransport Technigaz and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Consolidated Communications.
Diversification Opportunities for Gaztransport Technigaz and Consolidated Communications
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and Consolidated is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Consolidated Communications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Consolidated Communications go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Consolidated Communications
If you would invest 12,780 in Gaztransport Technigaz SA on October 22, 2024 and sell it today you would earn a total of 1,600 from holding Gaztransport Technigaz SA or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Consolidated Communications Ho
Performance |
| Timeline |
| Gaztransport Technigaz |
| Consolidated Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Gaztransport Technigaz and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Consolidated Communications
The main advantage of trading using opposite Gaztransport Technigaz and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| Gaztransport Technigaz vs. Sunny Optical Technology | Gaztransport Technigaz vs. EVS Broadcast Equipment | Gaztransport Technigaz vs. Texas Roadhouse | Gaztransport Technigaz vs. THORNEY TECHS LTD |
| Consolidated Communications vs. Zoom Video Communications | Consolidated Communications vs. Boyd Gaming | Consolidated Communications vs. PENN NATL GAMING | Consolidated Communications vs. QINGCI GAMES INC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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