Correlation Between Gaztransport Technigaz and Natural Health
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and Natural Health 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 Natural Health 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 Natural Health Trends, you can compare the effects of market volatilities on Gaztransport Technigaz and Natural Health 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 Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Natural Health.
Diversification Opportunities for Gaztransport Technigaz and Natural Health
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Natural is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Natural Health Trends in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trends 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 Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trends has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Natural Health go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Natural Health
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 0.63 times more return on investment than Natural Health. However, Gaztransport Technigaz SA is 1.6 times less risky than Natural Health. It trades about -0.01 of its potential returns per unit of risk. Natural Health Trends is currently generating about -0.01 per unit of risk. If you would invest 13,300 in Gaztransport Technigaz SA on September 5, 2024 and sell it today you would lose (100.00) from holding Gaztransport Technigaz SA or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Natural Health Trends
Performance |
| Timeline |
| Gaztransport Technigaz |
| Natural Health Trends |
Gaztransport Technigaz and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Natural Health
The main advantage of trading using opposite Gaztransport Technigaz and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| Gaztransport Technigaz vs. Superior Plus Corp | Gaztransport Technigaz vs. NMI Holdings | Gaztransport Technigaz vs. Origin Agritech | Gaztransport Technigaz vs. SIVERS SEMICONDUCTORS AB |
| Natural Health vs. ANGLER GAMING PLC | Natural Health vs. Hochschild Mining plc | Natural Health vs. HOCHSCHILD MINING | Natural Health vs. OURGAME INTHOLDL 00005 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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