Correlation Between Gaztransport Technigaz and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on Gaztransport Technigaz and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and ELMOS SEMICONDUCTOR.
Diversification Opportunities for Gaztransport Technigaz and ELMOS SEMICONDUCTOR
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and ELMOS is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELMOS SEMICONDUCTOR has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and ELMOS SEMICONDUCTOR
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.37 times more return on investment than ELMOS SEMICONDUCTOR. However, Gaztransport Technigaz SA is 2.72 times less risky than ELMOS SEMICONDUCTOR. It trades about 0.18 of its potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about 0.06 per unit of risk. If you would invest 13,250 in Gaztransport Technigaz SA on August 29, 2024 and sell it today you would earn a total of 890.00 from holding Gaztransport Technigaz SA or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| Gaztransport Technigaz |
| ELMOS SEMICONDUCTOR |
Gaztransport Technigaz and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite Gaztransport Technigaz and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR will offset losses from the drop in ELMOS SEMICONDUCTOR'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 |
| ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Microsoft | ELMOS SEMICONDUCTOR vs. Microsoft |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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