Correlation Between Gaztransport Technigaz and KENEDIX OFFICE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and KENEDIX OFFICE 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 KENEDIX OFFICE 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 KENEDIX OFFICE INV, you can compare the effects of market volatilities on Gaztransport Technigaz and KENEDIX OFFICE 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 KENEDIX OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and KENEDIX OFFICE.
Diversification Opportunities for Gaztransport Technigaz and KENEDIX OFFICE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and KENEDIX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and KENEDIX OFFICE INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENEDIX OFFICE INV 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 KENEDIX OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENEDIX OFFICE INV has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and KENEDIX OFFICE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and KENEDIX OFFICE
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to under-perform the KENEDIX OFFICE. In addition to that, Gaztransport Technigaz is 1.97 times more volatile than KENEDIX OFFICE INV. It trades about -0.2 of its total potential returns per unit of risk. KENEDIX OFFICE INV is currently generating about -0.17 per unit of volatility. If you would invest 91,000 in KENEDIX OFFICE INV on September 24, 2024 and sell it today you would lose (3,000) from holding KENEDIX OFFICE INV or give up 3.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. KENEDIX OFFICE INV
Performance |
| Timeline |
| Gaztransport Technigaz |
| KENEDIX OFFICE INV |
Gaztransport Technigaz and KENEDIX OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and KENEDIX OFFICE
The main advantage of trading using opposite Gaztransport Technigaz and KENEDIX OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, KENEDIX OFFICE 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 KENEDIX OFFICE will offset losses from the drop in KENEDIX OFFICE's long position.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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