Correlation Between Gaztransport Technigaz and FISH PAYK
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and FISH PAYK 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 FISH PAYK 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 FISH PAYK HEALTH, you can compare the effects of market volatilities on Gaztransport Technigaz and FISH PAYK 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 FISH PAYK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and FISH PAYK.
Diversification Opportunities for Gaztransport Technigaz and FISH PAYK
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gaztransport and FISH is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and FISH PAYK HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISH PAYK HEALTH 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 FISH PAYK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISH PAYK HEALTH has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and FISH PAYK go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and FISH PAYK
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.79 times more return on investment than FISH PAYK. However, Gaztransport Technigaz SA is 1.26 times less risky than FISH PAYK. It trades about 0.24 of its potential returns per unit of risk. FISH PAYK HEALTH is currently generating about 0.08 per unit of risk. If you would invest 12,330 in Gaztransport Technigaz SA on August 29, 2024 and sell it today you would earn a total of 1,850 from holding Gaztransport Technigaz SA or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. FISH PAYK HEALTH
Performance |
| Timeline |
| Gaztransport Technigaz |
| FISH PAYK HEALTH |
Gaztransport Technigaz and FISH PAYK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and FISH PAYK
The main advantage of trading using opposite Gaztransport Technigaz and FISH PAYK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, FISH PAYK 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 FISH PAYK will offset losses from the drop in FISH PAYK's long position.| Gaztransport Technigaz vs. NOV Inc | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| FISH PAYK vs. Apple Inc | FISH PAYK vs. Apple Inc | FISH PAYK vs. Superior Plus Corp | FISH PAYK vs. SIVERS SEMICONDUCTORS AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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