Correlation Between Gaztransport Technigaz and CHINA OIL
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and CHINA OIL 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 CHINA OIL 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 CHINA OIL AND, you can compare the effects of market volatilities on Gaztransport Technigaz and CHINA OIL 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 CHINA OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and CHINA OIL.
Diversification Opportunities for Gaztransport Technigaz and CHINA OIL
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gaztransport and CHINA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and CHINA OIL AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA OIL AND 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 CHINA OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA OIL AND has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and CHINA OIL go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and CHINA OIL
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.0 times more return on investment than CHINA OIL. However, Gaztransport Technigaz SA is 1.0 times less risky than CHINA OIL. It trades about 0.04 of its potential returns per unit of risk. CHINA OIL AND is currently generating about -0.04 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. CHINA OIL AND
Performance |
| Timeline |
| Gaztransport Technigaz |
| CHINA OIL AND |
Gaztransport Technigaz and CHINA OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and CHINA OIL
The main advantage of trading using opposite Gaztransport Technigaz and CHINA OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, CHINA OIL 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 CHINA OIL will offset losses from the drop in CHINA OIL'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 |
| CHINA OIL vs. INSURANCE AUST GRP | CHINA OIL vs. SCANSOURCE | CHINA OIL vs. Japan Post Insurance | CHINA OIL vs. QBE Insurance Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |