Correlation Between Gaztransport Technigaz and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and CHINA TONTINE 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 CHINA TONTINE 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 CHINA TONTINE WINES, you can compare the effects of market volatilities on Gaztransport Technigaz and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and CHINA TONTINE.
Diversification Opportunities for Gaztransport Technigaz and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and CHINA TONTINE
If you would invest 12,832 in Gaztransport Technigaz SA on October 1, 2024 and sell it today you would earn a total of 78.00 from holding Gaztransport Technigaz SA or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Gaztransport Technigaz |
| CHINA TONTINE WINES |
Gaztransport Technigaz and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and CHINA TONTINE
The main advantage of trading using opposite Gaztransport Technigaz and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. China Oilfield Services | Gaztransport Technigaz vs. NOV Inc |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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