Correlation Between Gaztransport Technigaz and INDCOMMBK CHINA
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and INDCOMMBK CHINA 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 INDCOMMBK CHINA 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 INDCOMMBK CHINA ADR20, you can compare the effects of market volatilities on Gaztransport Technigaz and INDCOMMBK CHINA 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 INDCOMMBK CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and INDCOMMBK CHINA.
Diversification Opportunities for Gaztransport Technigaz and INDCOMMBK CHINA
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaztransport and INDCOMMBK is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and INDCOMMBK CHINA ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDCOMMBK CHINA ADR20 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 INDCOMMBK CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDCOMMBK CHINA ADR20 has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and INDCOMMBK CHINA go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and INDCOMMBK CHINA
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 1.42 times less return on investment than INDCOMMBK CHINA. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 1.48 times less risky than INDCOMMBK CHINA. It trades about 0.05 of its potential returns per unit of risk. INDCOMMBK CHINA ADR20 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 756.00 in INDCOMMBK CHINA ADR20 on September 19, 2024 and sell it today you would earn a total of 404.00 from holding INDCOMMBK CHINA ADR20 or generate 53.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. INDCOMMBK CHINA ADR20
Performance |
| Timeline |
| Gaztransport Technigaz |
| INDCOMMBK CHINA ADR20 |
Gaztransport Technigaz and INDCOMMBK CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and INDCOMMBK CHINA
The main advantage of trading using opposite Gaztransport Technigaz and INDCOMMBK CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, INDCOMMBK CHINA 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 INDCOMMBK CHINA will offset losses from the drop in INDCOMMBK CHINA's long position.| Gaztransport Technigaz vs. SBM OFFSHORE | Gaztransport Technigaz vs. SOLSTAD OFFSHORE NK | Gaztransport Technigaz vs. TFS FINANCIAL | Gaztransport Technigaz vs. VIRG NATL BANKSH |
| INDCOMMBK CHINA vs. Gaztransport Technigaz SA | INDCOMMBK CHINA vs. Commonwealth Bank of | INDCOMMBK CHINA vs. Ameriprise Financial | INDCOMMBK CHINA vs. GOLD ROAD RES |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |