Correlation Between Gaztransport Technigaz and G-III APPAREL
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and G-III APPAREL 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 G-III APPAREL 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 G III APPAREL GROUP, you can compare the effects of market volatilities on Gaztransport Technigaz and G-III APPAREL 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 G-III APPAREL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and G-III APPAREL.
Diversification Opportunities for Gaztransport Technigaz and G-III APPAREL
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gaztransport and G-III is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and G III APPAREL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III APPAREL 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 G-III APPAREL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III APPAREL has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and G-III APPAREL go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and G-III APPAREL
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.76 times more return on investment than G-III APPAREL. However, Gaztransport Technigaz SA is 1.32 times less risky than G-III APPAREL. It trades about 0.08 of its potential returns per unit of risk. G III APPAREL GROUP is currently generating about -0.02 per unit of risk. If you would invest 13,310 in Gaztransport Technigaz SA on September 1, 2024 and sell it today you would earn a total of 350.00 from holding Gaztransport Technigaz SA or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. G III APPAREL GROUP
Performance |
| Timeline |
| Gaztransport Technigaz |
| G III APPAREL |
Gaztransport Technigaz and G-III APPAREL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and G-III APPAREL
The main advantage of trading using opposite Gaztransport Technigaz and G-III APPAREL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, G-III APPAREL 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 G-III APPAREL will offset losses from the drop in G-III APPAREL's long position.| Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Tenaris SA | Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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