Correlation Between Gaztransport Technigaz and CSL
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and CSL 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 CSL 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 CSL LTD SPONADR, you can compare the effects of market volatilities on Gaztransport Technigaz and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and CSL.
Diversification Opportunities for Gaztransport Technigaz and CSL
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gaztransport and CSL is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and CSL go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and CSL
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.2 times less return on investment than CSL. In addition to that, Gaztransport Technigaz is 1.15 times more volatile than CSL LTD SPONADR. It trades about 0.01 of its total potential returns per unit of risk. CSL LTD SPONADR is currently generating about 0.01 per unit of volatility. If you would invest 8,381 in CSL LTD SPONADR on September 3, 2024 and sell it today you would earn a total of 119.00 from holding CSL LTD SPONADR or generate 1.42% 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. CSL LTD SPONADR
Performance |
| Timeline |
| Gaztransport Technigaz |
| CSL LTD SPONADR |
Gaztransport Technigaz and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and CSL
The main advantage of trading using opposite Gaztransport Technigaz and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Gaztransport Technigaz vs. NISSAN CHEMICAL IND | Gaztransport Technigaz vs. Siamgas And Petrochemicals | Gaztransport Technigaz vs. STMicroelectronics NV | Gaztransport Technigaz vs. LPKF Laser Electronics |
| CSL vs. Beazer Homes USA | CSL vs. Neinor Homes SA | CSL vs. BlueScope Steel Limited | CSL vs. Addus HomeCare |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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