Correlation Between Gaztransport Technigaz and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and VIAPLAY GROUP 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 VIAPLAY GROUP 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 VIAPLAY GROUP AB, you can compare the effects of market volatilities on Gaztransport Technigaz and VIAPLAY GROUP 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 VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and VIAPLAY GROUP.
Diversification Opportunities for Gaztransport Technigaz and VIAPLAY GROUP
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and VIAPLAY is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB 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 VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and VIAPLAY GROUP
Assuming the 90 days horizon Gaztransport Technigaz is expected to generate 70.72 times less return on investment than VIAPLAY GROUP. But when comparing it to its historical volatility, Gaztransport Technigaz SA is 27.6 times less risky than VIAPLAY GROUP. It trades about 0.13 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1.57 in VIAPLAY GROUP AB on November 27, 2024 and sell it today you would earn a total of 1.56 from holding VIAPLAY GROUP AB or generate 99.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| Gaztransport Technigaz |
| VIAPLAY GROUP AB |
Gaztransport Technigaz and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and VIAPLAY GROUP
The main advantage of trading using opposite Gaztransport Technigaz and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, VIAPLAY GROUP 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.| Gaztransport Technigaz vs. Wyndham Hotels Resorts | Gaztransport Technigaz vs. China Resources Beer | Gaztransport Technigaz vs. National Beverage Corp | Gaztransport Technigaz vs. Playa Hotels Resorts |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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