Correlation Between Gaztransport Technigaz and Casio Computer
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Casio Computer 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 Casio Computer 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 Casio Computer CoLtd, you can compare the effects of market volatilities on Gaztransport Technigaz and Casio Computer 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 Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Casio Computer.
Diversification Opportunities for Gaztransport Technigaz and Casio Computer
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and Casio is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd 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 Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Casio Computer go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Casio Computer
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to under-perform the Casio Computer. But the stock apears to be less risky and, when comparing its historical volatility, Gaztransport Technigaz SA is 1.29 times less risky than Casio Computer. The stock trades about -0.14 of its potential returns per unit of risk. The Casio Computer CoLtd is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 655.00 in Casio Computer CoLtd on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Casio Computer CoLtd or generate 19.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Casio Computer CoLtd
Performance |
| Timeline |
| Gaztransport Technigaz |
| Casio Computer CoLtd |
Gaztransport Technigaz and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Casio Computer
The main advantage of trading using opposite Gaztransport Technigaz and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. NOV Inc | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| Casio Computer vs. Samsung Electronics Co | Casio Computer vs. Samsung Electronics Co | Casio Computer vs. Sony Group | Casio Computer vs. Superior Plus Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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