Correlation Between Gaztransport Technigaz and IMPERIAL TOBACCO
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO 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 IMPERIAL TOBACCO , you can compare the effects of market volatilities on Gaztransport Technigaz and IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and IMPERIAL TOBACCO.
Diversification Opportunities for Gaztransport Technigaz and IMPERIAL TOBACCO
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gaztransport and IMPERIAL is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and IMPERIAL TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPERIAL TOBACCO has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and IMPERIAL TOBACCO go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and IMPERIAL TOBACCO
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.61 times more return on investment than IMPERIAL TOBACCO. However, Gaztransport Technigaz is 1.61 times more volatile than IMPERIAL TOBACCO . It trades about 0.33 of its potential returns per unit of risk. IMPERIAL TOBACCO is currently generating about 0.38 per unit of risk. If you would invest 13,710 in Gaztransport Technigaz SA on November 8, 2024 and sell it today you would earn a total of 1,330 from holding Gaztransport Technigaz SA or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. IMPERIAL TOBACCO
Performance |
| Timeline |
| Gaztransport Technigaz |
| IMPERIAL TOBACCO |
Gaztransport Technigaz and IMPERIAL TOBACCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and IMPERIAL TOBACCO
The main advantage of trading using opposite Gaztransport Technigaz and IMPERIAL TOBACCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, IMPERIAL TOBACCO 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 IMPERIAL TOBACCO will offset losses from the drop in IMPERIAL TOBACCO's long position.| Gaztransport Technigaz vs. GAMES OPERATORS SA | Gaztransport Technigaz vs. GameStop Corp | Gaztransport Technigaz vs. UPDATE SOFTWARE | Gaztransport Technigaz vs. Firan Technology Group |
| IMPERIAL TOBACCO vs. ecotel communication ag | IMPERIAL TOBACCO vs. ECHO INVESTMENT ZY | IMPERIAL TOBACCO vs. UPDATE SOFTWARE | IMPERIAL TOBACCO vs. Sterling Construction |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |