Correlation Between Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL H, you can compare the effects of market volatilities on Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL.
Diversification Opportunities for Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaztransport and DONGJIANG is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and DONGJIANG ENVIRONMENTAL H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGJIANG ENVIRONMENTAL has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.67 times more return on investment than DONGJIANG ENVIRONMENTAL. However, Gaztransport Technigaz SA is 1.5 times less risky than DONGJIANG ENVIRONMENTAL. It trades about 0.16 of its potential returns per unit of risk. DONGJIANG ENVIRONMENTAL H is currently generating about -0.31 per unit of risk. If you would invest 12,950 in Gaztransport Technigaz SA on October 11, 2024 and sell it today you would earn a total of 760.00 from holding Gaztransport Technigaz SA or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. DONGJIANG ENVIRONMENTAL H
Performance |
| Timeline |
| Gaztransport Technigaz |
| DONGJIANG ENVIRONMENTAL |
Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL
The main advantage of trading using opposite Gaztransport Technigaz and DONGJIANG ENVIRONMENTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, DONGJIANG ENVIRONMENTAL 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 DONGJIANG ENVIRONMENTAL will offset losses from the drop in DONGJIANG ENVIRONMENTAL's long position.| Gaztransport Technigaz vs. REVO INSURANCE SPA | Gaztransport Technigaz vs. Webster Financial | Gaztransport Technigaz vs. NORTHEAST UTILITIES | Gaztransport Technigaz vs. Commonwealth Bank of |
| DONGJIANG ENVIRONMENTAL vs. Ultra Clean Holdings | DONGJIANG ENVIRONMENTAL vs. Gaztransport Technigaz SA | DONGJIANG ENVIRONMENTAL vs. QUEEN S ROAD | DONGJIANG ENVIRONMENTAL vs. Clean Energy Fuels |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |