Correlation Between Gaztransport Technigaz and Cass Information
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Cass Information 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 Cass Information 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 Cass Information Systems, you can compare the effects of market volatilities on Gaztransport Technigaz and Cass Information 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 Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Cass Information.
Diversification Opportunities for Gaztransport Technigaz and Cass Information
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gaztransport and Cass is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems 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 Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Cass Information go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Cass Information
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.23 times less return on investment than Cass Information. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 1.27 times less risky than Cass Information. It trades about 0.19 of its potential returns per unit of risk. Cass Information Systems is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Cass Information Systems on August 28, 2024 and sell it today you would earn a total of 320.00 from holding Cass Information Systems or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Cass Information Systems
Performance |
| Timeline |
| Gaztransport Technigaz |
| Cass Information Systems |
Gaztransport Technigaz and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Cass Information
The main advantage of trading using opposite Gaztransport Technigaz and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| Gaztransport Technigaz vs. CompuGroup Medical SE | Gaztransport Technigaz vs. Apollo Medical Holdings | Gaztransport Technigaz vs. Clearside Biomedical | Gaztransport Technigaz vs. MEDICAL FACILITIES NEW |
| Cass Information vs. JJ SNACK FOODS | Cass Information vs. CN MODERN DAIRY | Cass Information vs. AUST AGRICULTURAL | Cass Information vs. AUSNUTRIA DAIRY |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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