Correlation Between Gaztransport Technigaz and DOCDATA
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and DOCDATA 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 DOCDATA 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 DOCDATA, you can compare the effects of market volatilities on Gaztransport Technigaz and DOCDATA 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 DOCDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and DOCDATA.
Diversification Opportunities for Gaztransport Technigaz and DOCDATA
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and DOCDATA is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and DOCDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOCDATA 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 DOCDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOCDATA has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and DOCDATA go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and DOCDATA
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.37 times more return on investment than DOCDATA. However, Gaztransport Technigaz SA is 2.74 times less risky than DOCDATA. It trades about 0.04 of its potential returns per unit of risk. DOCDATA is currently generating about -0.03 per unit of risk. If you would invest 9,970 in Gaztransport Technigaz SA on September 3, 2024 and sell it today you would earn a total of 3,790 from holding Gaztransport Technigaz SA or generate 38.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. DOCDATA
Performance |
| Timeline |
| Gaztransport Technigaz |
| DOCDATA |
Gaztransport Technigaz and DOCDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and DOCDATA
The main advantage of trading using opposite Gaztransport Technigaz and DOCDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, DOCDATA 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 DOCDATA will offset losses from the drop in DOCDATA'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 |
| DOCDATA vs. Gaztransport Technigaz SA | DOCDATA vs. COLUMBIA SPORTSWEAR | DOCDATA vs. DICKS Sporting Goods | DOCDATA vs. SPORTING |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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