Correlation Between Gaztransport Technigaz and OPERA SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz and OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE, you can compare the effects of market volatilities on Gaztransport Technigaz and OPERA SOFTWARE 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 OPERA SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and OPERA SOFTWARE.
Diversification Opportunities for Gaztransport Technigaz and OPERA SOFTWARE
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gaztransport and OPERA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and OPERA SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPERA SOFTWARE 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 OPERA SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPERA SOFTWARE has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and OPERA SOFTWARE go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and OPERA SOFTWARE
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to generate 1.16 times more return on investment than OPERA SOFTWARE. However, Gaztransport Technigaz is 1.16 times more volatile than OPERA SOFTWARE. It trades about 0.36 of its potential returns per unit of risk. OPERA SOFTWARE is currently generating about 0.01 per unit of risk. If you would invest 12,980 in Gaztransport Technigaz SA on October 30, 2024 and sell it today you would earn a total of 1,850 from holding Gaztransport Technigaz SA or generate 14.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Gaztransport Technigaz SA vs. OPERA SOFTWARE
Performance |
Timeline |
Gaztransport Technigaz |
OPERA SOFTWARE |
Gaztransport Technigaz and OPERA SOFTWARE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gaztransport Technigaz and OPERA SOFTWARE
The main advantage of trading using opposite Gaztransport Technigaz and OPERA SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz position performs unexpectedly, OPERA SOFTWARE 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 OPERA SOFTWARE will offset losses from the drop in OPERA SOFTWARE's long position.Gaztransport Technigaz vs. Cass Information Systems | ||
Gaztransport Technigaz vs. Automatic Data Processing | ||
Gaztransport Technigaz vs. Alibaba Health Information | ||
Gaztransport Technigaz vs. THAI BEVERAGE |
OPERA SOFTWARE vs. Apple Inc | ||
OPERA SOFTWARE vs. Apple Inc | ||
OPERA SOFTWARE vs. Apple Inc | ||
OPERA SOFTWARE vs. Apple Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |